The Financial Markets are buzzing with the term Alternative Investments, or what are frequently referred to as “Alts”. The Financial Press is continually referring to “Alt” investments, and “Alt” alternatives for the retail investor.
So, the natural question is, what is an Alternative Investment? And who are Retail Investors?
It may be more helpful to describe what an Alternative Investment is by describing what an Alternative Investment is not. An Alternative Investment is distinguished from traditional corporate stocks or corporate bonds. Thus, an “Alt” is neither a traditional Stock nor a Bond. That leaves open the remainder of the Investment Universe to qualify as an Alternative Investment. Some examples include:
- Private Equity Funds
- Venture Capital
- Real Estate Funds – Both credit and equity
- Art & Collectibles
- Precious Metals
- Energy Investments
- Even Sport Team ownership shares
Historically, it has been difficult for the average, retail investor to access alternative investment platforms. Through the democratization of the financial markets, these investments are now becoming available to the average investor, i.e., retail investor.
So why invest in an Alternatives? Because they can offer excellent risk-adjusted returns while providing excellent portfolio diversification!! Most financial advisors now recommend that retail investors have 20%-40% of their total portfolio invested in Alternatives.
WINPRO, LLC manages several Alternative Credit Funds that offer investors the opportunity to participate in Commercial Real Estate Debt Investments. These credit investments offer investors:
Cash Flow – received through interest payments. Distributed to Investors Quarterly.
Preferred Returns – Investors receive a ten percent (10%) preferred return – distributed quarterly.
Security – All investments are secured by commercial real estate assets at typically at a .65 > loan-to-value ratio – this provides Equity-type Investment Returns with Bond-like Security.
Diversification – across asset types, geographies, and cycles.
Capital Appreciation – achieved through discounts and other cash flow streams.
Capital Gains Treatment – possible is some circumstances.
Professional Management – Credit Fund is managed by a group of individuals with over 90 years of combined commercial real estate expertise.
Give WINPRO a call at 720.344.1174 and one of manager’s will be happy to discuss how WINPRO can enhance your investment portfolio.