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Newoak Capital president Jim Frischling explains how Carlyle's move to lower the bar for investors is a game changer for private equity.
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Much our 50000 dollars -- new look five million.
As the Carlyle group becomes the latest arm told lower the threshold for investing in their funds is -- created a private equity Jim bristling capital co-founder president is here and and you say this move but Carlisle.
And -- PE community overall this isn't gain changer.
For how we invest our money.
Well I mean if you look at where we are today in terms of equity worked -- Equity markets at all time highs a low fixed income environment and we -- talking about it's an environment where people should be putting risk on.
And investing money where do you do it in here that PE firms are coming out saying we will lower what was traditionally a very high threshold almost.
They -- -- very unique threshold of millions of dollars and they're blowing into which seems now to be more of a -- it's not it's not it's not chump change but at 50000 dollars of it before broader and larger audience that can now deploy capital.
And invest would be speaking first.
-- but you're investing in these companies that that they -- and Carlyle KKR except trapped without a lot of regulatory issues I mean you get more freedom in private equity the cost is higher.
But you don't have the guys the government unwelcome here.
What but I also funny to -- the SEC about a year ago actually made amendments to the investor -- an investor advisors.
Act where they were actually raising the threshold of what would be considered a qualified.
Investor -- a qualified individual on the flip side the PE firms are lowering.
The actual amount of money that they would except so I do find that -- -- balance we have some naysayers were complaining the fee structures -- -- -- PE firms.
Palm is is rather high do you think about the one point 5% of the Carlyle.
Plus the feeder fee of one point eight -- 3.3 percent running but if you look at their returns I didn't yeah exactly.
But it but if you look at the returns I have to tell you I actually think that might be pretty good deal.
Pumpkin theory of unique opportunities as firms like Carlyle like Blackstone and their peer group can get to actually.
So you know if that was Digisette now why don't mind paying a 3% -- on the investment because look -- at Carlyle group that stock that's not your -- 24% KKR over the last year 36% Blackstone.
Up 33% and even gets better you today -- got Apollo a year over year Apollo of 66%.
In.
Uncertainty -- the Dow up what 10% so far year to date and then you've got your date 55% gain on fortress like an -- -- of the numbers the second half of the story.
A -- complaining but the fee structure that are missing that big point which is -- -- after fee basis these returns are stellar.
Relative to the other opportunities facing what I'll consider it -- it's still high net worth but still the retail investment community so.
I think it did you think they're doing and others are following suit.
And I think they're gonna raise their assets tremendously -- Big picture a quick at 1565 point 15 -- -- S and they would make headed today they have -- on our hands.
You buying into the to the the party here or -- little more -- I mean we continue to believe that given the backdrop and and I know a lot of the bears are complaining it's -- -- -- driven.
But it could you bet against this -- bet against the Fed.
You -- actually suffered tremendously so we do think the environment is still right.
We can get the market the stalled a little bit because are watching the economy try to catch up we are seeing some pretty good data so yes we think we're gonna continue to grind higher.
All right -- fresh slate tension points reached at thank you very much as always interesting but that was really interesting things thanks to.
