Peter Lacaillade

I believe it to my core in investing and the alpha that I believe we can generate for our clients.

But I also see it firsthand, having seen multiple private equity owners as partners with the firm we invest in or that I'm a part of.

I think when done well, and actually I have a family business that was transitioned in a very great way to a private equity platform.

So I've seen it a bunch of different ways.

But

If you think about it, I mean, private equity has major advantages to public markets because you're getting long duration capital that can take is not this thinking three to seven plus years.

And they're thinking strategically when done well, and they just have major advantages over people in the public markets that have to manage quarter to quarter and deal with the volatility of that, etc.,

The returns, if you look 25 years, there's a consistent, call it three to 5% alpha that you get from investing in the private market.

That is probably appropriate given the illiquidity.

However, one thing I love about private markets relative to public markets is there's the ability to pick top managers who persist over time or structural things that enable us to have conviction that we can deliver top quartile performance consistently.

And if you do that, you can get another 5% plus on top of the 3% to 5% that you expect over public equities, which basically equates to high teens, low 20s.

Yeah.

To go back to the private equity as a force for good, because when I say that, I'm actually talking more about like the companies themselves and the way it works.

I'll back up.

So...

SCS, a founder-led company founded in 2002 by a guy named Pete Mattoon and a few other folks who had a vision that the private wealth space had a real gap.

You had the investment banks like Goldman Sachs on one side that had great brands and investment capabilities, but were very conflicted in what they did.

And then you had independent shops that were good at

Trust and estate advice aligned, but not that savvy on the investment side.

There was a gap in the market.