Investology: Investment Management Intelligence
00:23:29 · Andrea Carnelli Dompé, Andrea Carnelli Dompé, George Aliferis
[00:23:29] S0: I think democratization could be great if done properly. So in principle, if you give more options, more investment options to a wider audience, more people will be able to choose what's best for them. That's in theory. What's happening often, though, [00:23:46] S1: when it comes to democratizing corporate markets is that products are being pushed [00:23:51] S0: onto people who shouldn't really have it in their portfolios or into, say, liquidity and maturity constraints. And B, [00:24:00] S1: sometimes these products are mainly a way for some intermediaries to drive more fee [00:24:08] S0: generation. So if we reduce these opportunities for bad acting, I think democratization could be great, to be honest. [00:24:17] S1: But if instead these trends continue and people see it as a way to make more fees [00:24:23] S0: and push the wrong products to the wrong people, I think it's going to be a boomer in the industry. So I'm kind of worried about it. [00:24:31] S2: Yeah, [00:24:32] S1: democratization could be that you no longer need 20 people to really be an NLP, [00:24:38] S2: a player in the game. [00:24:39] S1: That brings me to my final question, which I call the fantasy fintech question. How do you see private markets evolve in the best possible way in the near future [00:24:51] S2: if there's no constraints? [00:24:53] S0: Well, I'll tell you how I would love it to evolve, [00:24:55] S1: as I think it should evolve in this way to be really value additive to the [00:24:58] S0: community for investors.
00:24:58 · Andrea Carnelli Dompé, Andrea Carnelli Dompé, George Aliferis
[00:24:58] S0: community for investors. [00:25:00] S1: I think, first of all, information should flow as it goes in public markets. [00:25:06] S0: It shouldn't be something hard to access and extract and understand. It should flow as easily as in public markets. So that's number one. Number two, [00:25:14] S1: we should make advances in having a unifying language to compare publics with [00:25:20] S0: privates. Because as we insert these investments in broader portfolios, we need to understand interactions. We need to understand what makes sense to add private versus not. And we still lack a unifying language. There's massive debate simply of why IRRs are misleading. So that's point number two. Point number three, [00:25:38] S1: I see more secondaries as a day-to-day tool to exit positions you don't want [00:25:44] S0: anymore, just like in the stock market, just like in the fixed income market. Lower fees, I think private market generally generate value, but I think oftentimes there's lots of fee capture, value capture from GPs. So I hope that the fees and carry will go down. And finally, back to your point before, responsible democratization. I think with all these things happening, private markets will be a great force of good for portfolios. [00:26:10] S2: Okay, we probably need to do one episode for each of those four points. So four more. But that's a great conclusion. Thank you so much, Andrea. It's been a wonderful conversation. [00:26:21] S1: Perhaps you want to tell us as well what's the best way to find more information [00:26:24] S2: and contact you.
00:26:24 · George Aliferis, Andrea Carnelli Dompé, Andrea Carnelli Dompé
[00:26:24] S2: and contact you. [00:26:26] S1: And we will put all that in the description in the show notes of the podcast. [00:26:30] S0: Yeah, fantastic. Well, it's been a pleasure. Thanks for the chat. I really enjoyed it. And yes, we have a website, of course, with a contact form. I'm very active on LinkedIn as well. So I typically monitor my messages. So either way, it's a good way to reach us. [00:26:42] S2: Thank you very much, Andrea. And thanks very much for watching or listening to us.