This episode explores the intersection of private and public markets, focusing on recent market activity and the blurring lines between these sectors. Against this backdrop, the hosts discuss Endeavor's recent privatization, highlighting the unusual market behavior leading up to the deal's closure and the anticipation of potential class-action lawsuits due to perceived undervaluation. More significantly, the conversation pivots to KKR's strategic shift towards long-term ownership of companies, mirroring a mini-Berkshire Hathaway model, a move driven by the firm's success in the high-fee, high-return financial services business. For instance, the hosts analyze KKR's portfolio of 18 strategic holdings, including consumer staples like 1-800 Contacts, and discuss the implications of this shift for the future of private equity. Finally, the hosts delve into the emergence of real-time stock charts for private companies on platforms like Yahoo Finance, analyzing the implications for market transparency and the future of public offerings. What this means for the future of finance is a potential convergence of private and public market dynamics, with implications for how companies are valued, traded, and ultimately, how investors participate in these markets.
