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.
You can also learn about the different types of alts, read up on common alts terms, and review commonly asked questions about alts by exploring our website’s various resources.
Become a Blue Vault Member
Understand the alts industry and its offerings with a Blue Vault membership. Our members gain access to a diverse suite of reliable, independently sourced research on private credit, real estate, and equity investments.
Our searchable, easy-to-useresearch portal and intelligence reports can equip you with valuable insights and intel to track industry trends and recommend solutions for clients.
Are you an asset manager, broker-dealer, or other firm serving the alts industry? Contact us today to view a full demo of our unparalleled research offerings.
“The Blue Vault database and reports help us separate the facts from the marketing when looking at alternative investments. It also helps us keep on top of legacy alts that no longer have wholesalers who provide updates. If you are using or interested in using alternative investments, Blue Vault is a must.”
– Frederick E. Hubler, Jr. MBA CWS® CEO & Chief Wealth Strategist, Creative Capital Wealth Management Group; Contributor to Forbes.com
