BiggerPockets Money Podcast

374: Private Equity: Passive, Profitable Investments You’ve Probably Never Heard Of

01.16.2023 - By BiggerPocketsPlay

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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.

In This Episode We Cover

Private equity explained and the simple yet highly profitable business model behind it

The two and twenty rule and why private equity firms are designed to maximize your money

Private equity returns and whether or not the high profits are worth the long time horizon

The “unloved” businesses that have seen massive growth thanks to private equity

Rising interest rates and how this could affect the value of private equity investments

The businesses you already buy from that are owned by private equity

How to find and invest in private equity even if you’re not a mega-millionaire

And So Much More!

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Click here to check the full show notes: https://www.biggerpockets.com/blog/money-374

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