Alternative investments
We have over 23 years of hands-on experience and a track record in originating, structuring, and investing in alternatives across the globe.
Historically, private market investments were only available to institutional and other large investors. Thanks to our investments in technology, and solid institutional partnerships, our eligible clients have direct access to one of the largest selections of a curated menu of private market investments available.
It's essential to note that alternative investments often have limited liquidity, high fees, and may require a more sophisticated understanding of the market. Investors should carefully evaluate their risk tolerance, investment goals, and seek professional advice before considering alternative investments as part of their portfolio.
Alternative investments refer to investment options beyond traditional assets such as stocks, bonds, and cash. These types of investments offer diversification and potential for higher returns but also come with increased risk and complexity. Here are some common types of alternative investments:
Private equity
Private equity involves investing in privately held companies or acquiring ownership stakes. It often focuses on early-stage companies with high growth potential. Private equity investors provide capital in exchange for equity ownership and aim to generate returns by improving the company's performance and eventually selling their stake.
Venture capital
Venture capital is a subset of private equity that focuses on investing in startups and early-stage companies with innovative ideas and high growth potential. Venture capitalists provide funding, mentorship, and guidance to help these companies grow. They typically exit their investments through an initial public offering (IPO) or acquisition.
Hedge funds
Hedge funds are investment funds that pool capital from multiple investors and employ various strategies to generate returns. These strategies can include long/short equity, event-driven, global macro, and arbitrage. Hedge funds often use leverage and derivatives to amplify returns but also increase risk. They are typically available only to accredited investors due to their complex nature.
Real Estate
Real estate investments involve purchasing, owning, or leasing properties for potential income generation and appreciation. This can include residential, commercial, or industrial properties. Real estate investments can provide rental income, tax benefits, and potential capital gains. Investors can participate directly by purchasing properties or indirectly through real estate investment trusts (REITs) or real estate crowdfunding platforms.
Commodities
Commodities refer to raw materials or primary goods such as gold, oil, natural gas, agricultural products, and metals. Investing in commodities can be done through futures contracts, options, or exchange-traded funds. Commodities provide diversification benefits and can act as a hedge against inflation but can also be volatile.
Private Debt
Private debt involves lending money to non-public companies or individuals in exchange for interest payments. It can include direct lending, mezzanine debt, distressed debt, and peer-to-peer lending. Private debt investments offer fixed income returns and the potential for higher yields compared to traditional bonds.
Digital assets
Digital assets are virtual or electronic representations of value that exist and are transacted on digital platforms or networks. They can encompass a wide range of items, including cryptocurrencies, digital tokens, digital securities, virtual currencies, and digital collectibles. Digital assets derive their value from the underlying technology that supports them, such as blockchain. They are typically stored and traded electronically, providing ease of transfer and potential for decentralized and borderless transactions. It's important to note that digital assets are subject to regulatory considerations and may carry unique risks related to security, volatility, and market liquidity.
Srtuctured products
Structured investments combine various investment instruments to create a customized investment strategy. These products often involve derivatives, such as options or swaps, and can be linked to various underlying assets, including stocks, bonds, or indices. They offer the potential for enhanced returns, downside protection, or a combination of both. However, structured investments can be complex and may have features that limit liquidity or expose investors to additional risks. It's crucial for investors to thoroughly understand the terms, features, and potential risks associated with structured investments before investing.
Ways to invest in alternatives
There are several ways to invest in alternatives, such as direct investments, co-investments, multi-manager funds, managed & direct investment solutions, private places insurance and annuities. This can work for taxable and tax-deferred accounts.
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Direct Investments: Investors can directly invest in private equity, real estate, or start-ups by purchasing equity or ownership stakes in these assets.
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Investment Funds: Investing in alternative investment funds, such as hedge funds, private equity funds, or venture capital funds, allows individuals to gain exposure to a diversified portfolio of alternative assets managed by professional fund managers.
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Exchange-Traded Funds (ETFs): Some alternative investments, like commodities or real estate, can be accessed through ETFs, which trade on stock exchanges and provide investors with diversified exposure to these asset classes.
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Crowdfunding Platforms: Investors can participate in alternative investments through crowdfunding platforms that connect individuals with investment opportunities in areas like real estate, small businesses, or creative projects.
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Managed Accounts: High-net-worth individuals may opt for managed accounts offered by financial institutions or wealth management firms that provide customized alternative investment strategies tailored to their specific goals and risk tolerance.
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Private Placements: Accredited investors can participate in private placements, which involve investing in private companies or projects that are not publicly traded, often through private offerings or direct placements.
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Private Real Estate Investment Trusts (REITs): REITs allow investors to access real estate investments by purchasing shares in companies that own and operate
We have a proven track record in solving complex financial objectives for our upscale clientele across the globe, and significant deal making expertise and experience globally. With over $20 Bln of successfully closed transactions, our team can guide you through the most complex transactions.
Our advice will always reflect our understanding of the global marketplace and the opportunities IFG can offer. Our relationships, though, will always be personal, focused on you, your local community and on all that matters to your family and the future you're building.