00:00Private credit, no offense, it's a little dull and nobody cares, it seemed like.
00:04Private equity, especially the XOVR, which we talk about sometimes put SpaceX,
00:09and all of a sudden the flows came in.
00:10You now have this private equity tracker.
00:12With the Goldman name, I know it's going to get flows.
00:14But here's the question.
00:16Help sell it to me.
00:17I feel like normally with ETFs, people want the real thing.
00:20They want actual private equity, not a synthetic version where you're trying to emulate the returns.
00:26How confident are you you can do it and sell it?
00:29Yeah, so great question.
00:30So let's talk maybe a little bit about why now, what is it, and how it works.
00:35That will really address your question.
00:36In terms of why now, demand for private asset exposure, demand for alternatives, we're seeing that every day.
00:42And at Goldman Sachs Asset Management, we're working with our clients across the spectrum, traditional semi-liquids.
00:48But there's still a gap in terms of real access and greater access, right?
00:54When you think about private equity, it's access to breakthrough themes.
00:59It's the ability to get exposure to small companies that haven't gone public, mature companies that maybe don't want to go public, right?
01:07So that exposure is in high demand for that type of diversification.
01:11In terms of what this product is, well, let me tell you this.
01:15Let me tell you what it's not.
01:16I'm going to surprise you by leading with that.
01:18It is not direct access to private equity.
01:20That's really important because we want to be very clear about what it is and what it isn't.
01:24It is an index.
01:25It is tracking the MSCI World Private Equity Return Tracker Index, right?
01:30That's a really important clarification because it's doing that by replicating the characteristics of private equity through a portfolio of public equities.
01:42How is it able to do that?
01:44This is a data story, right?
01:46And the data is what is MSCI able to access, right?
01:50They're able to access through their private asset database, working with thousands of LPs that they have access to, deal level information, fund performance information.
02:01You're talking about access to over $7 trillion of assets, 8,000 funds, almost 80,000 portfolio companies.
02:09What is that data providing us?
02:11Information around fees, cash flows, valuations.
02:16What can they then do with that data?
02:18Well, they can then translate it into characteristics you talk about all the time, region, style, factor.
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