The Truth About Private Equity

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 largely manufactured. Deal flow never stops.

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

We aren't writing here about private equity professionals. It's about the role private equity plays in a long-term, life-focused portfolio.

Below are our thoughts:

PE-Related Risks

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 looks 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 in many cases it can actively work against one. These deals lock up capital, defer cash flow, and pull your focus toward profit vs purpose.

On their own, these vehicles and related transactions 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.

Gg portfolios are 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 self-healing. Strong businesses grow and the weaker ones fall away. Over time, a Gg portfolio naturally shifts toward those creating the most value which captures the best of human ingenuity, constantly evolves, adapts... and compounds.

And it works.

Compounding your wealth and providing rising income that is directed with purpose. Cash flow that converts wealth into life.

It funds experiences.

Supports your family.

And creates freedom and flexibility.

Our Take

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

In rare circumstances a direct investment with clear visibility, alignment, control, and expertise can make sense. But allocating capital to a private investment means selling out of the best businesses on the planet to do it... and that is a 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 private equity decision seems isolated. It’s a small allocation here or an interesting idea there, but the impact compounds. Money gets locked up, cash flow is deferred, and each deal adds another layer of complexity. The risk isn’t just lower returns, it’s a less free and flexible financial life.

Private equity sells complexity as sophistication.

We believe true sophistication is a simple, intentional portfolio designed around your life.