"Sisyphus’ harsh punishment of an eternity of fruitless labor was well deserved for his life full of evil and trickery."
Retirement plans are the result of a lifetime of labor and two groups want in, private equity and crypto, aka "digital assets." Private equity stakes have been called the Holy Grail of investing.
Big returns for decades, who wouldn't want some of that? First, Tony Robbins wants you to buy secondary private equity stakes, those sold by limited partners who want out. The first leg of big secondary returns is driven by a simple wave of an accounting pen.
The second wave may not come for a while, according to one high placed private equity underwriter (PEU).
Those Holy Grail returns are gone for now and that's just the reality of where PEUs are. Crypto is also calling. The low rumble began after FTX's implosion in November 2022
Many private equity founders have gone on to create their own family office, sort of a personal PEU and they are betting on crypto.
Carlyle Group co-founder David Rubenstein has a family office, Declaration Partners. It has a stake in Paxos, a cryptocurrency play. Paxos announced yesterday:
I believe lift is synonymous with pick-pocket.
Evil and trickery want in your retirement account. Elected officials have catered to the PEU class and offer no protection from skilled financial predators. They do provide unparalled access, preferred taxation and significant resources from Uncle Sam's wallet.
Politicians Red and Blue love PEU and increasingly, more are one.
Update: FN reported from SuperReturn on PEUs selling secondary stakes:
“Distributions to paid-in capital will naturally be the most significant metric that investors are focusing on. In the first half of the year, we have seen a number of GPs looking to raise DPI through the secondary market, and in particular the growth in the use of single asset continuation funds, a trend we expect to continue.
Update 6-12-24: WallStreetonParade clearly outlined the danger from cryptocurrencies. Bloomberg reported on PEU peril.
