There has been a lot of ink spilled on the debate entitled: Are Private Fund Sponsors Marking Their Reported NAV to Market or Cost?

It is correct to state that it is hard to value any asset -public or private – and marking daily or quarterly to the whims and nonsense of public markets has its own flaws, which should be self-evident. But THERE IS an inherent conflict of interest when you are both selling product and marking your own book. The games noted below in this dumbed-down Morningstar piece are monstrously widespread.

What was fun here is that yes, investors voted for the change to become a public vehicle, trading illusion for liquidity.

What’s in your wallet if you really wanted the money?