Gurley recounts PE firm making billion dollars on DoubleClick exit but struggling because it was in $4 billion fund.
“I said to him, I want to say, congratulations, man, that's incredible. He goes, well, it's in a $4,000,000,000 fund. Wow. Wow. You know? Yeah. So, That's you have an incredible outcome.”
Gurley argues most US endowments and foundations are now overinvested in private equity and venture capital.
“I think the Swinson mimic effect has now played out. And I think personally that most of the endowments and foundations in The US are over invested in private, both PE and venture.”
Gurley argues most US endowments and foundations are over-invested in private markets with no incentive to get paper marks right.
“And I think that the way the industry is structured in this would require longer conversation. There's no incentive for the operators inside of the endowments or foundations to get the paper marks right.”
Gurley dismisses mid-market private equity work as unmotivating though acknowledging money can be made there.
“I don't even I would never be motivated by it, but but, you know, I'm not not necessarily shitting on them too bad. Like, somebody there are you can make money.”