Private Market Investing With Tim Macready
FaithFi: Faith & Finance | Jan 30, 2024
Show Notes
HOW DID YOU BECOME INTERESTED IN AND A LEADER IN THE FAITH-BASED INVESTING MOVEMENT?
Tim grew up on the mission field and returned to Australia for studies, initially working with pension plans. His desire to do something meaningful led him to a faith-based pension fund in Sydney. For 15 years, he has explored what it means to be a faithful steward of God's resources, now working with pension funds, investment advisors, and families at the intersection of faith and investing.
CAN YOU EXPLAIN THE DIFFERENCE BETWEEN PUBLIC AND PRIVATE MARKETS IN INVESTING?
Private markets differ from public markets in investment structures, using vehicles like private market funds, real estate investment trusts, and limited partnerships instead of mutual funds, stocks, and ETFs. These are typically aimed at more experienced investors with larger investment sizes and hold various assets such as venture capital, private equity, or private credit.
HOW DO PRIVATE MARKET INVESTMENTS OFFER DIVERSIFICATION?Private markets are used by large investors to diversify into different types of assets and specific themes. These investments are becoming more accessible to smaller investors, offering diversification away from traditional public stocks and bonds.
HOW DO FAITH-BASED INVESTMENTS INTERSECT WITH PRIVATE MARKETS?
Initially, there were hardly any faith-based options in private markets, but now there are 50 to 100 faith-based private market funds and hundreds more in broader impact investing. Most are still for qualified or accredited investors, but I'm optimistic that faith-integrated private market investments will become available to everyday investors soon.
WHAT ARE THE RISKS AND POTENTIAL PERFORMANCE OF PRIVATE MARKET INVESTMENTS?
Investors should be aware of risks, especially liquidity, as private market funds cannot be sold as quickly as public stocks or bonds. Private markets can have more volatile performance due to concentrated portfolios but offer diversification and potential for investment outcomes independent of public markets.
ON TODAY’S PROGRAM, ROB ANSWERS LISTENER QUESTIONS:
- I'm a 76-year-old single woman with a home valued over a million dollars, $80,000 in cash, and $2,000 monthly from Social Security. I enjoy a good lifestyle but am unsure about my financial future and options.
- I own a rental property adjacent to my home and the renter wants to buy it, along with an additional acre of land. Should I sell it as one parcel to maximize capital gains, and how can I transition from this passive income?
- I'm currently employed full-time but struggling to make ends meet and pay off debts, including credit cards and a personal loan. I'm considering taking out a loan to invest in a cryptocurrency business for additional income.
RESOURCES MENTIONED:
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