Gerber Kawasaki Wealth & Investment Management CEO Ross Gerber has accused large private-market players of keeping troubled private credit and private equity marked at inflated levels, then said wirehouses are still collecting management fees as if those assets were worth full price, a setup he likened to the run-up to the 2008 mortgage blowup.
He has also argued that inflation pressures are being reignited by tariffs and war, warning in tariffs and war pushing living costs up that once price momentum takes hold it can be hard to unwind, which can make already-opaque valuations even harder for investors to judge.
In a series of posts on X, Gerber wrote that private-market transparency is essential because weak assets are not being written down, and he called for stricter accounting at major private equity firms.
Why Private-Market Valuations Need Urgent Reform
Gerber’s sharper allegation centered on fee mechanics: he said wirehouses are billing clients in managed accounts based on unchanged values, even when the underlying private holdings are deteriorating.
He compared that dynamic to the incentives that, in his view, helped drive the 2008 housing-finance disaster, where compensation kept flowing while risk accumulated.
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