Why Winners Keep Winning in Private Markets | Brandon Averill, Justin Dyer | AWM Insights #90

To get the best returns in Private Markets you need to have an advantage. Do you have more information or uncommon expertise about the company? Can you add value to the company to improve their chances of success? Do you have the time and team to evaluate 1000s or deals a year. The best firms keep winning for the same reason Alabama dominates College Football. The best talent, coaches & players,  want to go there. This success breeds more success. It is the same in venture capital.EPISODE HIGHLIGHTS:(0:28) News: Omicron and faster Fed tapering is causing volatility in the market. (1:26) Inflation has moved from being transitory to more persistent according to the Federal Reserve. .   (2:56) MLB Players have been locked out by MLB Team Owners. Until an agreement is reached, the MLB 2022 season is in jeopardy.. (3:03) Money has been pouring in to Private Investments amid strong performance. (5:31) Private markets, unlike public markets, have information asymmetry which can cost novice investors a lot of money.(7:37) To get the best returns in Private Markets you need an advantage. You need to have better information or the ability to add value along with Capital. (9:51) About 60% of venture capital companies go belly up. (11:11) The winners keep winning when it comes to Venture Capital. (11:30) The best venture capital firms are like the elite College Football Teams. The best talent wants to go there and they get the best deals. It’s a self reinforcing cycle. (12:41) The best venture firms are seeing 1,000 pitches a year. They only pick a few. (13:37) Expected returns in the future - resetting your expectations(15:29) Private markets are not the most tax efficient asset class(17:25) Invest in the best in the private markets or just take your money and go right back to the public