Comment by blargey
3 months ago
Most PE roll ups are not in your 401k - that’s what private equity means.
While some may eventually find enough success to IPO and subsequently enter a big index, the past few decades of VOO / buy-the-market growth owes far more to tech stocks than what’s being discussed here.
There are a few big ones like Blackstone/KKR/Goldman, but the point is all these investors have to beat SP500 for taking on the risk, and so if SP500 is getting 10% for no risk, then the only way the PE deals make sense is if over leverage and it inevitably results in changes that adversely affect customers, for any business that can’t scale with technology.