Volatility Has Been Good for Making Deals: Caillaux

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00:00So the consensus idea, I think, when it comes to the public markets, at least, is that volatility is here to stay for years, perhaps.

00:06What do you do in that environment?

00:08Is the playbook to just kind of hold on to the assets longer, or is it to lean into the volatility?

00:14What do you think?

00:15Listen, the problem with volatility is it's kind of the death of capital formation, right?

00:19When volatility spikes, you see public markets shut down, and private markets struggle as well to deal.

00:25As I said, that's been our biggest opportunity in the new deal-making front,

00:28because we've taken advantage of volatility, honestly, to price deals in a way I hadn't seen in almost 20 years.

00:34So it's been a really appealing market.

00:36I think when it comes to public capital formation and creating liquidity,

00:40I think we're going to have to resort to either new forms of liquidity, whether that's the secondaries market,

00:45or, to your point, holding on to great assets.

00:47If you think about that opportunity for investors, why not hold on to your best assets?

00:52I'm a huge believer that private capital is a better product for our investors.

00:56We've delivered alpha, but it's a better product also for entrepreneurs.

01:00The type of companies we invest in are growing 30%, 40%.

01:02We help them with that.

01:04Public markets penalize them for not doing things.

01:06And so I think there's a natural and healthy aspect to longer duration in private.

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