Michael Mauboussin was back on the Invest Like The Best Podcast to discuss his epic paper (book?), “Public to Private Equity in the United States: A Long-Term Look.” Here’s why it matters: where companies get funding at different stages of growth and development has shifted. It matters for the companies you might want to start and it matters for the companies you might want to work for. It also (obviously) matters to investors, allocators, and policymakers, which is his primary audience here. It’s wonky, but it’s really interesting to see so much of this story quantified. Even if you’re not a markets person, the history inside of this is pretty incredible too (ex. See his summary of the start of the venture capital industry).
Mauboussin gets into how younger and smaller companies are more likely to be absorbed into older and larger companies, how younger and larger companies can stay private for longer than ever, and how this shapes the new ideas, products, and services available to businesses and consumers. Read the paper and listen to this expert curation with O’Shaughnessy to think through this evolving landscape. It’s such a “big” idea, it’s amazing to have this level of detail and perspective all in one place.