Private Equity Explained | High Returns Hidden in Plain Sight

about episode 374:

  • January 13, 2023
  • 55 Likes
  • 1 Comments
  • 1755 Views

Want More BiggerPockets Money?

Private equity is a term often left undefined. Ask most people if they’ve heard of private equity, and they’ll say yes. But ask them to explain what it is or how it works, and most Americans will struggle to come up with even a sentence. The industry of private equity investing is shrouded in mystery, but it probably shouldn’t be. If you know what private equity is and how to invest in it, you could take home passive income that beats the stock market and real estate investing with none of the headaches or short-term panic of either.

This simple-to-understand but constantly overcomplicated industry could make you better returns, with far less work, investing in businesses you already know and trust. This is precisely what Sachin Khajuria’s book, Two and Twenty: How the Masters of Private Equity Always Win, is all about. As a former partner at one of the world’s largest alternative asset firms with over two decades of experience, Sachin can explain the ins and outs of private equity better than anyone.

Sachin will demystify the often shadowy world of private equity in this episode. He explains why it’s such a lucrative business and how it’s coming close to matching the same firepower as the public markets many of us invest in. With potential returns far higher than traditional assets, Sachin makes a strong case for why you should be looking into private equity now before the masses find out about it and flood the market.

00:00 Intro
02:33 Private Equity Explained
06:44 What Makes it So Lucrative?
13:07 Who’s Doing These Deals?
21:13 How Private Equity Grows Businesses
23:50 Investing in Unloved Industries
27:54 How Much Could You Make?
31:15 How to Invest in Private Equity
36:13 The Incentive to Perform
39:44 The Impact of High Interest Rates
49:19 Private Equity Wrap-Up

Show Notes at:
https://www.biggerpockets.com/blog/money-374?utm_source=youtube&utm_medium=description&utm_campaign=none
~~~~
Join BiggerPockets for FREE 👇
https://www.biggerpockets.com/signup?utm_source=owned_media
~~~~
Join the BiggerPockets Money Facebook Group:
https://www.facebook.com/groups/bpmoney
~~~~
Find an Investor-Friendly Agent in Your Area:
https://www.biggerpockets.com/agent/match?utm_source=owned_media
~~~~
Alternative Investments—How to Determine Which Option(s) Are Right For You:
https://www.biggerpockets.com/blog/biggerpockets-money-podcast-144-kirk-chisholm?utm_source=youtube&utm_medium=description&utm_campaign=none
~~~~
Syndications—Everything You Need to Know BEFORE You Invest:
https://www.biggerpockets.com/blog/biggerpockets-money-podcast-219-j-scott?utm_source=youtube&utm_medium=description&utm_campaign=none
~~~~
Grab Sachin’s Book, “Two and Twenty”:
https://www.amazon.com/Two-Twenty-Masters-Private-Equity-ebook/dp/B09DK12LDF
~~~~
Want to Be a Guest on the BiggerPockets Money Show? Apply Here:
Guests: https://www.biggerpockets.com/guest?utm_source=youtube&utm_medium=description&utm_campaign=none
Finance Friday: https://www.biggerpockets.com/financereview?utm_source=youtube&utm_medium=description&utm_campaign=none
~~~~
Connect with Scott and Mindy on BiggerPockets:
Scott: https://www.biggerpockets.com/users/scotttrench?utm_source=youtube&utm_medium=description&utm_campaign=none
Mindy: https://www.biggerpockets.com/users/mindyjensen?utm_source=youtube&utm_medium=description&utm_campaign=none

Episode 374

#biggerpockets #biggerpocketsmoney #money374
Receive the latest podcast

Subscribe To Our Weekly Newsletter

Get weekly actionable FIRE strategies delivered straight to your inbox.