Podcast

Is private equity really outperforming public markets, or are flawed benchmarks, infrequent valuations, and unrealized gains creating an illusion of superior returns? Sofia Gertsberg, Managing Director and Head of Quantitative Investment Science at HarbourVest, joins host Kevin Max on the Enterprising Investor podcast to examine why private equity performance remains so difficult to measure and compare. From conflicting benchmarks and stale valuations to the growing divide between paper returns and actual cash distributions, Gertsberg explores how investment-level benchmarking could help investors distinguish genuine manager skill from leverage, market exposure, and valuation effects. As private equity expands into wealth management and retirement portfolios, what should institutional allocators and financial advisers demand to ensure that reported returns reflect economic reality?

For this episode, we catch up with the Co-founder of Macro Matters – Lotta Moberg.  Rich speaks to Lotta about a wide range of topics – portfolio construction, AI in investment management, private markets, and her new podcast “Financial Thought Exchange”

Insurance companies sit at an increasingly important intersection of investing, private credit, and financial stability. Andrew Granato and Pranjal Drall have been studying how the growing involvement of private-equity firms in insurance is changing insurer balance sheets and potentially shifting risks among policyholders, other insurers, and taxpayers. Andrew Granato is an Assistant Professor at the University of Texas School of Law and holds a J.D. and Ph.D. in Financial Economics from Yale, previously serving as a Senior Associate Economist at the Federal Reserve Bank of Chicago, while Pranjal Drall is a J.D.-Ph.D. candidate in Financial Economics at Yale Law School and the Yale School of Management.

In this episode, Andrew and Pranjal trace the evolution of private-equity ownership of insurance companies, from the traditional relationship between insurers and asset managers to the rise of firms such as Apollo and Athene. We discuss why annuity assets have become attractive sources of long-term capital, the growing role of private and structured credit on insurer balance sheets, and how affiliated transactions can create potential conflicts between policyholders, asset managers, and private-equity investors.

We also explore the unusual structure of U.S. insurance regulation, including state-based oversight, offshore reinsurance, and the mechanics of state insurance guarantee funds. Andrew and Pranjal explain what happens when an insurer fails, why healthy insurers can ultimately be responsible for supporting policyholders of failed competitors, and how tax credits can shift some of those costs back to taxpayers over time. We close with potential reforms, including prefunding guarantee systems and tying insurer assessments more closely to balance-sheet risk, as well as what advisors and policyholders should consider when evaluating increasingly complex insurance products and carriers.

Today’s hosts are Steve Curley, CFA (Founder/Co-Managing Principal, 55 North Private Wealth) & co-host Chris Cannon, CFA (CIO/Principal, FirsTrust).

Please enjoy the episode. You can follow us on Twitter & LinkedIn or at investorsfirstpodcast.com.

Show Notes:

• [Andrew Granato – University of Texas School of Law Faculty Profile](https://law.utexas.edu/faculty/andrew-granato/) [law.utexas.edu]
• [Pranjal Drall – Yale Planetary Solutions Profile](https://planetarysolutions.yale.edu/profile/pranjal-drall) [planetarys…s.yale.edu]
• Private Credit’s State Backstop: How Private Equity Socializes Risk Through Insurers – Pranjal Drall & Andrew (https://papers.ssrn.com/sol3/papers.cfm?abstract_id=7152239) [papers.ssrn.com]
• Private Credit’s State Backstop – University of Texas School of Law[law.utexas.edu]

Tracie McMillion, CFA, is Head of Global Asset Allocation Strategy at Wells Fargo Investment Institute, a subsidiary of Wells Fargo & Company.  We talk with Tracie about global asset allocation and historical lessons, how portfolios are impacted by inflation, geopolitical risks and exogenous shocks, and her latest findings on women and investing.  

Tracie McMillion is focused on delivering the highest quality investment expertise and advice to help investors manage risk and succeed financially. Wells Fargo Investment Institute serves Wealth and Investment Management, a division of Wells Fargo & Company, and is comprised of Wells Fargo Private Bank and Wells Fargo Advisors businesses.

In her current role, Ms. McMillion leads a team that develops capital market assumptions and asset allocation recommendations. She also writes market commentary and analysis. She is frequently quoted in the national media, including The Wall Street Journal, Reuters, Bloomberg Television, and CNBC.

Prior to her current role, she served as an asset allocation strategist and a senior investment research analyst for Wells Fargo and predecessor firms. Earlier in her career, she managed assets for high-net-worth clients and philanthropic organizations.

Tracie earned a Bachelor of Arts in Economics and a Master of Business Administration from the College of William and Mary in Virginia. She is a CFA® charterholder and member of the CFA Society North Carolina. Ms. McMillion is located in Winston-Salem, North Carolina.

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