David Rubenstein, Baltimore, America discussed on Masters in Business


There's something going on in the middle of America that, you know, either their personal portfolio didn't necessarily have have enough allocation, but also, you know, a lot of these folks are from David Rubenstein, one of our LP's is from Baltimore in basis is from New Mexico, their their hometowns are these cities that have been left behind a lot of times. And of course, everybody wants to see their hometown, flourish. And they want to see the return of jobs to to a lot of these places where where they have they haven't seen the economic growth in vitality that that that we've seen a lot in on the coast. It's fascinating. So let's look a little bit about private markets in and venture investing. Why is it that when we look at private pre public companies, there's an expectation that the performance is going to be so much better than the public markets. You know, why shouldn't people just by an index fund and forget about it is is how someone put the question to me. So I'm going to pass it to you. What are the potential upsides of venture investment? Well, well, I think you know, the the first thing is the the appetite and ability to allocate risk whereas because of regulation because of just the the the cost and visibility of being public. It's harder for companies in the public markets do that. But on the private side, we're able to see things before they're before they're ready for primetime with you're still very risky and can completely flame out the risk of every round of investment that we do it revolution. And the rise of the rest. We we run the risk of the company calling us up one day saying it didn't work and. You know as as painful as that is there. Luckily for us. There's so many more calls that say, hey, it's working really well, or it's we think we've got eighty percent of it figured out. And and then the risk has been greatly reduced, but the opportunity is still huge to come up with, you know, the next social network, you know, it it's it's really risky when it's a little a little face app for.

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