The $32 Trillion Asset Class Your Clients Don’t Want You to Ignore
Investors are looking for—and need—a different approach to their investments other than the 60/40 portfolio.
That’s where investments in private credit, real estate, and equity—alternative investments—come into the picture in a big way. Alternative investments are expected to grow into a $32 trillion asset class by 2030.
ALTS OFFER IMPORTANT INVESTMENT BENEFITS
Investing in alts can offer investors unique portfolio benefits not found through other types of investments:
Diversification—low correlation to stocks and bonds
A hedge against inflation
Increased portfolio returns & reduced volatility—even in a down market
Current income
What are Alternative Investments?
Alternative investments are investment options that differ from traditional asset classes such as stocks, bonds and cash. They are called “alternatives” or “alts” because they provide investors with alternatives to the traditional investment avenues.
Blue Vault’s research focuses on publicly offered, nontraded offerings like nontraded REITs, nontraded BDCs, interval funds, tender offer funds, and preferred shares. Valuations for these offerings may be infrequent due to the lack of open market transactions.
Alts are also typically less liquid than conventional investments and may not be readily redeemable. As a result, investors in alts must be prepared to hold their investments for the long-term. In exchange, alts can potentially generate strong risk-adjusted returns.
Who Can Invest in Alts?
While many large institutions, pensions, and private endowments have historically allocated to alternatives, access to alts has become more readily available to individual “retail” investors.
Some alts offerings are available to the average investor, while others are only available to “accredited investors” who have a net worth exceeding $1 million (excluding primary residence) or personal income of $200,000 or more per year. Many such offerings have high minimum investments and complex fee structures compared to mutual funds and exchange traded funds, which also often limit investment to high-net-worth individuals.
Learn More
A great way to learn more about alternative investments—and stay up to date on alts industry trends and innovations—is to subscribe to our emails and explore our many learning opportunities.
Blue Vault Helps You Bring Alts to the Forefront of Your Practice
I’m New to Alts
Learn the basics, increase your knowledge and make key industry connections.
I Actively Offer Alts
Compare offerings, review financials, explore capital raising and dividend coverage through our reports and offerings database.
I Haven’t Offered Alts Lately
Understand how new investment structures and sponsors have redefined the alts space in terms of liquidity and transparency, and how industry service providers have simplified the alts transaction process.
