Is private equity really outperforming public markets, or are flawed benchmarks, infrequent valuations, and unrealized gains creating an illusion of superior returns? Sofia Gertsberg, Managing Director and Head of Quantitative Investment Science at HarbourVest, joins host Kevin Max on the Enterprising Investor podcast to examine why private equity performance remains so difficult to measure and compare. From conflicting benchmarks and stale valuations to the growing divide between paper returns and actual cash distributions, Gertsberg explores how investment-level benchmarking could help investors distinguish genuine manager skill from leverage, market exposure, and valuation effects. As private equity expands into wealth management and retirement portfolios, what should institutional allocators and financial advisers demand to ensure that reported returns reflect economic reality?

Private credit has grown into a $3.5 trillion asset class, promising higher yields, lower volatility, and greater liquidity. But are investors underestimating the risks? Cheryll-Ann Wilson, PhD, CFA, Senior Research Affiliate at CFA Institute, joins host Kevin Max to examine how opaque valuations, semiliquid funds, weaker loan covenants, and hidden leverage could expose investors to unexpected losses. As private credit moves into retail portfolios, what should wealth advisers and portfolio managers demand before investing?

Why do financial bubbles keep happening when investors know the warning signs? Mark Higgins argues that speculation may be driven less by irrational investors than by rational participants whose incentives increasingly align around keeping capital flowing. We explore how these speculative supply chains form, why risk becomes harder to see as they mature, and how the pattern that helped fuel the Global Financial Crisis may now be emerging in private equity and private credit.

Guest host Kevin Max, editor of Enterprising Investor, speaks with Mark J. Higgins, CFA, CFP®, financial historian, investment adviser, and author of Investing in U.S. Financial History: Understanding the Past to Forecast the Future.