The Truth About Private Equity

Before we get started, we want to be clear. We are not talking about full-time private equity professionals here. We are evaluating the place PE has in a long-term, life focused investment portfolio.

The Basics

Private equity is a broad category: buyout funds, venture capital, private credit, private real estate, infrastructure, etc.

It's always some version of the same pitch: beat the market, access returns you can't get anywhere else.

It's an industry built on a compelling story. Exclusive. Private. Sophisticated.

We understand the appeal. It's something no one else has access to and poses an allure of outsized returns. The reality is there are more than half a million of these deals each year and hundreds every single day. Scarcity is manufactured. Deal flow never stops.

Your deal feels unique. So does everyone else's. That opportunity has a cost — in many cases, far more than most realize.

A Deeper Dive on Cost

Illiquidity is the most obvious. Capital is typically locked up for 7 to 12 years. You give up flexibility which is one of the most valuable advantages wealth provides. Life doesn't operate on a fund timeline.

Leverage runs through every deal. Borrowed money amplifies outcomes in both directions. When rates are low, it can look like skill. When conditions change, it accelerates losses. And you're committed through the cycle.

Cash flow is largely nonexistent. These structures are designed to defer returns. You may go years without meaningful distributions while your capital is tied up.

Complexity is a cost most investors underestimate. K-1s, UBTI, multi-state filings, and layered structures create ongoing legal, tax, and administrative burden — on top of the fees you're already paying.

Transparency is limited by design. Valuations are set by managers, often infrequently and with broad discretion. Without daily pricing or independent verification, it can be difficult to know exactly where you stand.

Regulation is lighter by design. These structures operate with fewer disclosure requirements, less oversight, and limited investor protections compared to traditional investments.

Additional risks include: capital calls with little notice that may force poorly-timed asset sales, markups based on unvalidated transactions, dilution of ownership through later financing rounds, and limited access to top-performing managers — what is broadly offered typically falls in the middle of the distribution.

The Biggest Risk

A pitch is not a purpose. A deal is not a plan.

Private equity often lacks a plan and it can actively work against one. These deals can lock up capital, defer cash flow, and pull your focus toward profit vs purpose.

On their own, these structures have no connection to your life, your goals, your timeline, or your priorities.

The Gg Way

We don't chase deals or make bets on pitches. We own the best, the most accomplished businesses and brands in the world, with proven management, the strongest track records, and the deepest competitive advantages.

A Gg portfolio is broadly diversified, low cost, fully transparent, and highly liquid.

You know what you own, why you own it, and how much it costs.

No opaque pricing. No lockups. No dependence on a single manager. What we own operates under the most stringent regulatory oversight in the world, providing an added layer of accountability, protection and transparency.

Our portfolios are also self-healing. The strong businesses grow and the weaker ones fall away. Over time, they naturally shift toward those creating the most value which captures the best of human ingenuity, constantly evolves, adapts, and compounds.

And it works. Producing compounding wealth and rising income, reinvested and directed with purpose. Cash flow that converts wealth into life. It funds experiences. Supports your family. Creates freedom and flexibility.

Our Take

In general, we do not advocate for private equity in client portfolios.

In rare circumstances a direct investment can make sense, with clear visibility, alignment, control, and expertise. Allocating capital to a private investment means selling the best businesses on the planet to do it... and that is an extremely high bar.

A portfolio without a plan is nothing. A seductive deal is no different. In most cases, these aren't opportunities. They're distractions.

Each one seems isolated, a small allocation here, an interesting idea there. But the impact compounds. Every dollar locked up. Every year of deferred cash flow. Every added layer of complexity. The risk isn't just lower returns. It's a worse financial life.

Private equity sells complexity as sophistication. We believe true sophistication is a simple, intentional portfolio designed around your life.