The word ‘private’ comes with risk

Inserting the word ‘Private’ into a term or phrase doesn’t make it cheap.

The marketing seems to suggest that it’s better and perhaps exclusive to gain entry.

‘Private Club’, Private Equity’, ‘Private Room’, ‘Private Jet’, ‘Private School’, ‘Private Lounge’, ‘Private Credit’, Private Banker’ etc etc etc

But the word ‘private’ comes at a cost, it’s never a bargain.

The fees and what the provider/promoter can earn from you seem to precede the concern over the quality and level of the service being rendered….

Anything ‘private’ always starts as being expensive and remains so, the whole time…..

In the case of investment markets and funds, ‘private’ can also prove difficult to exit and likely expensive too.

The last 4 lines in the Eagles song, “Hotel California” come to mind.

Last thing I remember, I was running for the door

I had to find the passage back to the place I was before

“Relax, ” said the night man, “We are programmed to receive

You can check out any time you like, but you can never leave”

#public

July 3, 2024

by Rob Zdravevski

rob@karriasset.com.au