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Episode Description:

This show is a panel about the merits of private equity. On one side is Sachin Khajuria. a former partner at Apollo and twenty-five-year veteran of the industry, who recently authored “Two and Twenty.” Sachin was a past guest on the show discussing his book and that conversation is replayed in the feed.

On the other is Brendan Ballou, a federal prosecutor who serves on the special counsel for private equity in the Justice Department’s antitrust division and recently authored “Plunder: Private Equity’s Plan to Pillage America,” highlighting controversy and potential flaws in private market investing.

Our conversation begins with Sachin’s view on private markets as an essential value-additive element of the economy and Brendan’s thesis on the inadequacy of the legal structure surrounding the activity. We discuss incentives, investment duration, failed deals, fees, operational effectiveness, legal environment, risk, and broad education about the space. While the titles of their books might suggest a point-counterpoint discussion, the thoughtful nuance Sachin and Brendan bring to the table offer more commonality and food for thought than difference.

Show Notes

04:31 Sachin’s thesis
06:57 Brendan’s thesis
07:39 Incentives
09:58 Investment duration
17:10 Failed deals
24:18 Fees
29:58 Operational effectiveness
37:13 Legal environment
40:44 Impact of private equity
45:29 Risk and education on the space
54:44 Closing questions

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