How AI is Changing the Private & Public Markets
Warren Gibbon, Chief Investment Officer of a multi-family office at BFA, joins David Weisburd to analyze why investors must re-underwrite private market expectations amidst higher rates and massive capital inflows. They discuss public tech earnings power vs. private equity multiples, the risk and scale of AI infrastructure spending, passive investing distortions, and portfolio deployment strategies for newly liquid capital.
- Sudden liquidity events often trap allocators in ignorance debt, where rushing to commit capital into private equity locks up money right before market corrections. Read →
- Passive index funds and algorithmic trading now account for over 60% of public equity volume, driving mechanical buying in winning stocks and forced selling in declining ones regardless of company cash flows. Read →
- Public tech earnings surged 50% year-over-year in the second quarter, while the broader S&P 500 grew earnings by 29% and non-tech components rose 19%. Read →
- Middle-market buyout entry multiples have shifted from roughly 8x EBITDA to 12x EBITDA, requiring aggressive growth assumptions to match historical return targets. Read →
- Twelve established firms captured approximately 75% of all venture capital fundraising this year, driving extreme concentration at the top of the market. Read →