The Alternative Investor

Surprising Aspects of Private Equity - EP.28


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When I was on the other side of private equity (i.e. operating businesses), I always thought those in investing were out there counting money, doing deals, and going home at 4 p.m. … but now that I’m doing deals, I realize the reality is a lot different.


So in today’s episode, Brad and I are talking about some of the surprising and counterintuitive aspects of being in private equity and real estate private equity. There’s some misconceptions out there about how “unsexy” it can really be. 


First Brad kicks it off by telling us about some of the surprising things he has learned (having run his own real estate private equity fund), and then we take a look into the surprising aspects I've discovered working in private equity. We also discuss how much art tends to go into making deals versus science and how learning how to make these deals is kind of like building up a muscle!


Key Takeaways:

[:11] About today’s episode: surprising aspects of private equity.

[:52] Brad talks about some of the surprising (or counterintuitive) sides of private equity in real estate for him.

[7:37] Brad’s advice on if you’re looking to get into private equity, and how long it took for him to get his first deal in the industry.

[8:45] Brad gives some more surprising aspects of private equity.

[11:38] One of the surprising aspects I’ve discovered while working in private equity: how much art goes into it versus science.

[12:40] Brad explains how, similarly, “art” plays into real estate.

[14:05] How looking at deals is like building a muscle.

[18:33] Our last surprising aspect of private equity: taxes and regulatory aspects.

[23:49] How the private principal applies to real estate private equity.


For More on The Alternative Investor, Check Out:

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The Alternative InvestorBy Brad Johnson

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