Episode 409: Investment Banker - What Private Equity Doesn't Tell You

This is the Rational Reminder Podcast, a weekly reality check on sensible investing and financial decision making from two Canadians. We are hosted by me, Benjamin Felix, Chief Investment Officer, and Dan Bordellotti, portfolio manager at PWL Capital. Good to be back with another guest. Yeah, episode 409, and today we are joined by Jeff Hook, who is a former investment banking private debt and private equity executive in both New York and Washington, D.C.

He's been a senior lecturer at Johns Hopkins University and he's also written five books and a bunch of academic papers. His academic papers are largely on the topics that we talk about today, which is private markets, private equity, and private debt. He's also got a book His latest book, I believe it's a 2021 book, The Myth of Private Equity, so you can start to get a feel for the direction we're taking this conversation. His latest published academic paper talks about the performance shortfalls in private credit, which is something that I think was a very important paper because private credit has been being pushed to the industry and

more recently to retail investors very, very hard based on its superior performance and a particular superior risk adjusted returns. But in Jeff's research on this, he finds something quite different. It's also interesting, this was discussed in the Rational Reminder community, which is why I bring it up. His paper did have a rebuttal from Cliff Water, which is one of the large private credit managers.

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