As multi-cycle investors and operators, we recognize that the last three years were exceptional rather than typical. You may recall, many of those that invested in the downturn of 2008 were able to realize gains. During the last decades since then, valuations were high and capital were low-cost. Many today have not lived through difficult macro times. This data set from Goldman gives anecdotal support — approximately 55% of Goldman Sachs’ 46,000 employees started at the firm after 2020 — anyone starting a professional career post-2008 has had a very one-sided, right-tail distribution experience.
