The advantage in financial markets isn’t always about superior intelligence, but about proximity to information, according to a growing chorus of investors. Although insider trading remains illegal, the ability to access information earlier than the broader market is a perfectly legal and increasingly central, strategy in private markets.
This dynamic, highlighted in recent discussions among private equity and venture capital investors, underscores a fundamental difference between public and private investing. In public markets, regulations aim for a level playing field where information is disseminated simultaneously to all participants. Private markets, while, reward those with closer relationships to operators – the companies and individuals driving deals – and access to data before it becomes widely available.
“The best investors I grasp aren’t smarter than everybody else,” stated a recent post from Investors & Operators, a podcast and community focused on the M&A and private equity landscape. “They’re closer to the operator, they’re closer to the deal. They have the information before it becomes obvious.”
This “proximity” manifests in several ways. Investors who sit directly across the table from company leadership gain insights into financial performance before quarterly reports are released. They can ask targeted questions, probing for details that wouldn’t surface in public disclosures. This early access allows for more informed decision-making and a potential edge in securing favorable deal terms.
Jordan Selleck, CEO and Co-founder of 51 Labs and host of the Investors & Operators podcast, emphasizes the importance of these relationships. Recent podcast episodes have featured conversations with Brian Bank, a PE Strategy executive at Kirkland & Ellis, and Liz Weindruch, Managing Director at Barings, exploring the nuances of deal sourcing and investment strategies. These discussions highlight the value of direct engagement with industry professionals.
The demand for this type of access has spurred the growth of platforms like Special Ops, a network of vetted business advisors and dealmakers offering fractional executive services. Special Ops aims to connect investors with operators who can unlock value within portfolio companies, providing a direct line to on-the-ground expertise and early signals of potential opportunities. The platform utilizes an “Exit OS” powered by AI, designed to provide founders with a clear valuation and roadmap for potential exits.
Forbes has similarly addressed the importance of this operator-investor relationship, noting that navigating it successfully is “vital for expanding businesses successfully.”
The focus on proximity extends beyond simply knowing about deals; it’s about understanding the underlying dynamics and potential risks. As Grant Kornman, Partner at Align Collaborate, discussed on Investors & Operators, independent sponsors need to carefully evaluate equity partners, focusing on those who can genuinely contribute to deal-making success. Matt Salisbury, Founder at EVP Strategic Advisors, similarly emphasized the importance of a strategic approach to M&A, prioritizing long-term value creation.
The trend towards prioritizing proximity is also evident in the commercial real estate sector, where operators actively seek out off-market deals before they become widely publicized, as reported by 23rd Street Investors.
As of March 5, 2026, Investors & Operators released an episode featuring Brian Bank, PE Strategy, IR & BD Executive at Kirkland & Ellis. The podcast continues to explore these themes, with upcoming episodes planned and a growing subscriber base of over 300,000 investors, according to Wealth Stack Weekly.
