flywheel

And this should encourage even more participation — creating a virtuous circle of innovation, demand and monetization known as the “flywheel effect.”

“Management commentary is becoming increasingly positive, suggesting that the private markets flywheel can accelerate,” Weaver writes.

That would feed the tech giant’s flywheel model, a self-sustaining cycle of growth in which more subscribers means more money to spend on content, which in turn attracts even more users.

So long as that flywheel keeps spinning, private managers can keep growing their core fees for some time.

“They’ve earned pricing power, and the flywheel is spinning—predictable growth, expanding margins, and rising free cash flow.”