What if I told you that how your financial advisor values equity could reveal they don’t actually understand private equity?

In this Five Minute Friday, I go straight at one of the most common—and most dangerous—misconceptions I’ve heard hundreds of times: that the equity portion of your DSO/OSO deal should be valued at zero. If that’s what your financial advisor is telling you, you might be taking critical advice from someone who doesn’t understand how private equity actually works.

This episode is a follow-up to my last one on practice purpose and exit strategy. Here, I dive deeper into the real math and real logic behind equity in private equity-backed deals. You’ll hear about what a 2–3X return looks like in this space, how private equity compares to other investments (like index funds or even Ford stock), and why assuming the worst-case scenario could cost you millions. If you're considering a partnership—or even just want to be better informed—you need to hear this.

QUOTES
“If my financial advisor ever said to me, ‘assume the equity goes to zero’—I’d leave them instantly.”
— Dr. Glenn Krieger
“Equity is a real thing. If I put $2 million into Google, would you tell me to count it as zero in my portfolio?”
— Dr. Glenn Krieger

Key Takeaways
Intro + setting the record straight (00:00)
The core problem with how advisors view private equity equity (01:15)
Typical deal breakdown: cash vs. equity (02:40)
Realistic equity return benchmarks (03:45)
The Thurston Fund and what strong returns actually look like (05:10)
What questions to ask your PE partner up front (06:40)
Red flags: if someone promises 6–7X, walk away (08:00)
How equity compounds even while you collect a salary (09:15)
When your advisor says equity is worth “0” vs. any other investment (10:30)
Final questions to ask your advisor—put them to the test (12:00)

Additional Resources
I’ve seen firsthand how keeping the wrong person around too long can unravel a great team.
If you’re evaluating an offer, or even if you’re just PE-curious, please DM me. I’ll never push you to join a DSO or OSO—but I will help you make an informed, math-based decision. Let’s stop letting outdated assumptions dictate million-dollar moves.
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