The Alt Street Journal
Posts
🧱 PRIVATE EQUITY: The Problem—and The Fix

🧱 PRIVATE EQUITY: The Problem—and The Fix

Brick by Brick: How Private Equity Runs the World—and How You Can Play the Game

Tyler Lucas & Ryan Billings
April 07, 2025

💼 So, What Is Private Equity?

Let’s strip it down.

Private equity (PE) is a structure. A pool of capital raised from investors (LPs), managed by a General Partner (GP), who goes out and buys private assets—companies, buildings, infrastructure, sometimes debt.

At its best, PE fuels growth, rescues distressed companies, builds housing, and scales innovation.

At its worst?

It strip-mines value. It loads companies with debt, slashes costs, flips them fast—and leaves nothing but job losses and fee trails behind.

Venture capital (VC) is a branch of the same tree—just focused on earlier-stage companies with higher risk and higher potential reward.
But structurally, it’s still private equity: pooled capital, centralized control, exit-driven.

And the capital behind both?

🧠 Who Really Owns The System?

Let’s talk about the real power behind the curtain:
BlackRock. Vanguard. State Street.

These three asset managers collectively oversee over $20 trillion in global assets.

That’s more than the GDP of the United States, China, and Germany—combined.
It’s enough to buy every single home in America, with trillions to spare.

They are the largest shareholders in nearly every S&P 500 company, including:

Apple
Microsoft
Google
Amazon
JPMorgan
Exxon
Pfizer

They don't run these companies—but they vote the shares. In 2022 alone, BlackRock cast votes on behalf of over 10,000 public companies. That’s more global control than most governments will ever dream of.

And it’s not just public markets…

These firms fund private equity megafunds
Allocate capital to venture funds and real estate syndicates
Own stakes in media platforms that shape how the world sees itself
Fund tech platforms that harvest your data and serve you ads

This isn’t a conspiracy.
It’s capital structure.
And once you see it…

You realize how easy it is for a handful of firms to shape the price of assets, the direction of industries, and the public conversation—all at once.

🏘️ The Housing Example: A Visible Symptom

Let’s make it real: housing.

In the last decade, Wall Street has turned single-family homes into a full-blown asset class.

Blackstone, through Invitation Homes, owns over 80,000 homes
Tricon Residential, with institutional backing, holds 38,000+ units
In Atlanta, 1 in 3 homes sold in 2022 went to institutional buyers

They’re not buying these homes for community.
They’re buying rent-backed cash flow. Sticky yield. Inflation-resistant income.

And the kicker?

The capital behind these purchases often comes from the same pensions, endowments, and index funds that everyday investors are in.

So when a few players buy enough of something—whether homes, farmland, or water rights—they make it scarce.
And then?

They profit from the price going up—on assets they helped corner.

🧩 The Full Picture: Layered Control

Here’s how the stack works:

You invest in an ETF or private fund.
Your money is pooled by BlackRock or Vanguard.
They allocate to private equity, venture capital, and real estate megafunds.
Those funds buy homes, businesses, and media—using your capital.
Control concentrates. Power grows. And returns flow upward.

This isn’t just investing.
It’s owning the entire board.

And if we don’t diversify who gets funded, we’ll end up in a world where five firms own the banks, the homes, the jobs—and the narrative.

🫰 But It’s Not Too Late—Here’s the Play

Here’s the unlock 🔓️:
You finally have access.

A decade ago, if you weren’t cutting $10M checks, you weren’t touching private equity.

Today?

✅ You can get in with $100K
✅ You can access tax-advantaged income (depreciation, 1031s, etc.)
✅ You can diversify away from public market chaos
✅ You can invest in the deals, people, and assets you believe in

But most importantly:

You can fund the competition.

💡 The Smart Capital Move: Back Emerging Managers

Not everyone wants to be passive. Some investors want to shape outcomes.

That’s where emerging managers come in.

These are the next-generation fund managers:

🧠 Local operators who know the terrain
💥 Leaner teams with more skin in the game
📈 Often better net returns (less overhead, more conviction)
🤝 Deep community ties—not just data models

Nothing beats boots-on-the-ground insight. Data lags. Spreadsheets miss nuance. But locals feel it in real time.

Backing emerging managers means you’re betting on the next generation of Blackstones—before they become bloated and institutional.

Yes, it comes with risk.
Not every manager is proven.
But the upside is asymmetric when you pick right.

🏁 Final Thought: Let’s Build Wealth—And Shape The Future

You don’t need to abandon the system.
You just need to use it with intention.

Because the real power isn’t just in having capital—it’s in how you deploy it.

The next wave of legendary investors won’t just optimize returns.
They’ll build the infrastructure of a better future.

This is The Alt Street Journal.
Where capital meets context.
Where HNWs play offense.
And where strategy shapes society.

Let’s build wealth—and shape the future. Together.

Like Content Like This?

You’re reading The Alt Street Journal: Insider Edition.

Fair winds and following seas 🌅

Happy Reading,
Ryan & Tyler
The Alt Street Journal Crew

Reply

or to participate.