I find one of the most compelling reasons to invest in private equity today to be the valuation gap between public and private companies

The S&P 500 recently touched 22x forward PE where as private buyout deals have been falling around 11x forward earnings. (charts a little old but helps illustrate the point)

If you are constrained to only investing in the public markets, then starting valuations are a headwind that dampen future return prospects.

If you can access private equity at more attractive valuations, improve earnings, and take it to market via IPO, you can arb the spread in valuations, turning it into a tailwind, rather than a headwind.

All of this out of a Roth IRA so there are no tax consequences to the turnover!