About this episode
Chief Market Strategist Troy A. Gayeski, CFA, shares the key takeaways from his latest strategy note series on the post-election landscape for middle market private equity, private credit, senior commercial real estate lending and liquid multi-strategy funds.
Troy joins Content Strategist Harrison Beck to examine what new policies and continuing trends may mean for investors and allocators. He addresses valuation disparities between listed and private equities, corporate deal flow and bank consolidation, and how middle market private equity may offer compelling opportunities for GARP (growth at a reasonable price).
“We’re always trying to look at the pros and cons of election outcomes, just like we look at the pros and cons for any investment opportunity. So far, the pros outweigh the cons.” –Troy A. Gayeski
Transcript excerpt
[00:00:00] Troy Gayeski: We’re always trying to look at the pros and cons of election outcomes. We look at the pros and cons for any investment opportunity. So far, the pros outweigh the cons.
[00:00:38] Harrison Beck: Welcome, Troy.
[00:00:39] Troy Gayeski: Hey, Happy New Year, everyone. Happy New Year.
[00:00:42] Harrison Beck: Happy New Year to you, too. How is the beginning of your year going so far?
[00:00:45] Troy Gayeski: Well, other than getting the flu, it’s going pretty well. I was back on the road last or this week, I should say for the first time down in D.C. And Baltimore. So it’s always great to get re-engaged clients and then did a lot of media over the holidays, concluding with two appearances, January 2. But that’s always a nice way to get things kicked off.
[00:01:10] Harrison Beck: Wow, well, you’re keeping the momentum going over the holidays and you’re hitting the ground running, so it sounds like we’re off to a great start.
[00:01:17] Troy Gayeski: Yes, so far, so good.
[00:01:18] Harrison Beck: Well, regardless of your political views, it’s abundantly clear that the recent election will impact investor portfolios and potential opportunities. Troy, your new series of strategy notes titled appropriately “Post-Election Strategy Note, Laissez les bons temps rouler,” and “Post-Election Strategy Note, Part 2, Encore, les éléments enroulés,” go in-depth on what new policies may mean for key strategies, including middle market private equity, private credit, senior commercial real estate lending and liquid multi-strategy funds. We’re going to talk about each of these strategies today, but first, let’s start with why you wrote this note. Are allocators aware of the election’s potential impact on their portfolios, and if so, how accurate are their perspectives?
[00:02:04] Troy Gayeski: Well, even before we get into that, great job with the French accent, by the way. You can pronounce it much better than I could. But no, I think…so, there’s a lot of, maybe, consensus views that get a little bit carried away going into election, coming out of election. I think there’s a lot of consensus views that have formed that are accurate.