If you have any interest in private equity or have thought about it as an asset class, then this episode is for you! What is private equity? This might seem a simple question but the answer is more complex than you think. Private equity is a nuanced subject that requires a deep understanding to make successful investments. To help unpack this non-trivial subject is expert Ludovic Phalippou, a Professor of Financial Economics at the University of Oxford Saïd Business School. Although he studied economics in general, his research mainly focuses on unravelling the complexities of private equity. He has written many papers on the topic, including a book called Private Equity Laid Bare. He has a Masters in Economics and a Masters in Mathematical Finance from the University of Southern California and a Ph.D. in Finance from INSEAD, making him well versed in the subject. Besides his impressive qualifications and experience, his insight and ability to speak to the data make him stand out from other experts. In our conversation, we get into the basics of private equity and what makes it attractive to investors. During our conversation we discuss the challenges for measuring performance, how to best measure the performance of private equity funds, the different facets associated with private equity, how to tell if certain private equities are a good investment, and the differences between private and public equity. We also hear how it is applied as he walks us through some real-world scenarios and gives us some insider knowledge on the best private equity options. As you will hear from our conversation, there is no easy answer! Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-210-prof-ludovic-phalippou-private-equity-under-the-hood-discussion-thread/18159 Book From Today’s Episode: Private Equity Laid Bare — https://amzn.to/3AXAaWB Links From Today’s Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore Prof. Ludovic Phalippou on Twitter — https://twitter.com/lphalippou81 Prof. Ludovic Phalippou — https://pelaidbare.com/ 'An Inconvenient Fact: Private Equity Returns & The Billionaire Factory' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3623820 'What Drives the Value Premium?' — https://www3.nd.edu/~pschultz/Phalippou.pdf 22 in 22 Reading Challenge — Join the Rational Reminder’s 22 in 22 reading challenge! Ben’s Reading Code (22 in 22 Challenge): 7XWESMK Cameron’s Reading Code (22 in 22 Challenge): N62IPTX