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Today's show Ben and I spoke with Bob Long about their fund C-prime that invests in private markets.

And one of the themes that I am bullish on over the next decade is advisers granting access to private markets, whether it's private credit, real estate, private equity, whatever to their clients.

And C-prime has this fund already is I think it's launched at the end of 2020 and it's already got $600 million or they're about in assets.

High net worth individuals are interested in this kind of stuff and I agree I think that they're going to be maybe not clamoring for it but if it's available as an option a lot of them are going to find this interesting.

I think that people are really enamored with the idea of illiquidity not seeing the prices on a daily basis even if I don't know that anybody would say this out loud even if it's certainly not guaranteed to outperform anything but I wasn't kidding I said I might even take a discount to have some illiquidity and we spoke about this idea of the illiquidity premium.

And I think that there is some debate right now about whether or not that exists where comes from sources of returns things like that.

At the end of the day private markets are attached in some way to public markets they have to value these things but the valuation of them is more smooth.

So like in 2020 after the corona crash and you had this huge spike up you don't see that immediately in your private markets so it kind of goes both ways where you don't see those huge up swings right away where the stock market doubled in what nine or 12 months or something like you're not going to see that in your private arcs that will slowly catch up at the same thing on the way down.

It's more of a smooth approach and this is using a term you don't always like like Schrodinger's portfolio where like is the fund down because you don't see a mark every day.

It's one of these things where it should be tracking the public markets but because it's so much more long term and marked on a quarterly basis you just don't see it.

And I think for a lot of people some people say that's a bad thing because I want that liquidity other people would say that's a great thing I'm a long term investor I don't want to see it and I don't care.

Let's push a point of if you are going to type your money and make it in liquid then I agree you should receive a premium for that counterpoint if you are going to have the benefit of not getting marked to market on a daily basis and not seeing the fluctuations and experiencing smooth returns then for that you should take it to this count.

But I guess at the end of the day all that matters really is what are you investing in what are you paying and what are expected cash was going to be.

And I will say this was a podcast where you and I learned something I'd never heard of a tender fund you never heard of it credit to us for not making a reddit joke about attendees because it was sitting there it was just sitting there for us and we didn't do I never heard of this credit that so yeah I think we learned something I think this is an interesting structure so without further ado here is our talk with Bob long from converses.

We're joined today by Bob long Bob is the CEO of converses Bob we're going to learn a little bit about today about what converses is and what you guys do but what kind of the show.

Thank you glad to be here.

All right so we checked out the website a little bit you guys offer high net worth individuals the ability to invest in private markets.

How does this work what's the fun structure like how do you guys allow that to happen.

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