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Understanding Liquidity in the Private Markets

Understanding Liquidity in the Private Markets

Update: 2024-03-05
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Hosted by Bob Simpson, today we shift the focus to answering the question "What is Liquidity?".

In this episode Bob explores the complexities of liquidity in both private and public investment markets. He is a veteran of the financial industry, discusses the evolution from transaction-based to fee-based business structures and the gradual integration of private mandates into investment portfolios. 

He emphasizes the importance of understanding liquidity and its implications for various investment strategies, including private debt and equity solutions.

Simpson provides insights into the challenges of managing liquidity in private investments and the need for aligning investors' time horizons with investment strategies. 

He also compares the performance of private investments with traditional options like stocks and bonds, highlighting the importance of evaluating risk and returns. 

The episode concludes with Simpson underscoring the significance of patience and informed decision-making in navigating the financial landscape.

Points of Interest:
0:00 - Intro
1:00 - A deep dive into liquidity.
2:49 - Investors are faced with implications of reduced liquidity due to increase popularity.
4:30 - Your investment advisor should always have your best interest in mind! 
6:44 - Private managers work hard to give investors what they want.
7:54 - It's important to understand where your investment money is going.
9:08 - Plan your investment according to your financial goals.
11:11 - Are your stock funds accessible when you need them?
14:37 -  When time horizon's and investment processes align, it protects long-term interest.
16:05 - Review your current investments and seek comparable advantageous opportunities.
17:09 - Does providing investors with greater liquidity actually serve their best interests?
18:22 - Your financial journey begins when you understand your relationship to liquidity.

If you enjoyed this episode, please subscribe and visit our website at https://www.privatedebtandequity.ca/ for any questions or to learn more!

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Understanding Liquidity in the Private Markets

Understanding Liquidity in the Private Markets

Private Debt and Equity