Alan Waxman

What are the implicit risks that we're assuming away?

One of them in the case of Airbnb is we're assuming a way that there will be a cure.

We can't all be locked in our houses forever.

We were willing to take that risk, but we had to think about that because that was part of the investment.

But ultimately, it comes down to three or four or five things.

So I'd say, yes, simplify things, but it always comes down to those three to five things.

Our investors have expectations, but ultimately we're an absolute return investor.

Sometime, if you just take an extreme example, let's say that every single asset class is flooded with liquidity.

Maybe that's not the right time to invest.

And sometimes the best thing you can do as an investor is not invest.

But in terms of returns, it really depends on the level of risk units.

In 2017, we saw 15 to 20% deals, but it was too far out on the risk spectrum.

So we said, listen, that's too much risk, even though that return is there.

And some people kept doing that and some of it worked out well until COVID.

But we try to think about the environment that we're in and what things are giving us.

Also, our investors have a set of criteria for each fund that we try to meet that expectation as well.

This was a theme coming off of COVID sports and life experiences.

So 2020, a lot of the investments in sports teams, you weren't actually able to do as an institution.

Once COVID happened and all these big franchises, revenues went to zero.

People weren't going to games.