Have you ever reached into a coat packet to find that a $20 bill you lost a few years ago had turned into a $50 bill? Or, you hadn’t driven your car for a few months and the gas tank went from half full to completely full while just sitting in your driveway? It happens to me all the time . . . in my “alternative” world. When it comes to investments, wouldn’t it be nice just to write a check, and let those dollars grow without doing anything? The world of alternative investments can do just that and may be something you’re missing out on!
The one thing I have learned in my 30 years of investing is that if I want exposure to alternative assets, I leave it to the professionals who make it their business to master the art of these asset domains every day. Here are some examples of investments to help you get “Alternative”!
Secondary Investments
Secondary investment funds such as Akkadian, High Gear and Ion Pacific offer the accredited investor the ability to invest in late stage, pre-IPO companies such as Uber, DocuSign and Boom Supersonic. Essentially, these companies approach founders and early employees with the opportunity to sell some of their shares at a discount to realize a liquidity event. This allows them to enjoy some cash now for all their hard work, while the remainder of their shares await a major liquidation event such as a SPAC buyout or an initial public offering. The multiples on these investments can be tremendous with very controlled and mitigated risk.
Private Equity Investments
Private equity real estate firms such as our company, Recentric, offers accredited investors the opportunity to invest directly into medical office buildings in the Western region of the United States. We offer units of investment directly into the Limited Liability Company that acquires such medical office buildings. This investment vehicle offers exposure to one of the safest sectors of commercial real estate, with a 7–10 year horizon. This provides plenty of time to create equity for our investors that can hedge inflation and generate exceptional returns.
Blockchain Technology
Now, you may have read my newsletter Today’s Peacock is Tomorrow’s Feather Duster from July 2021. While cryptocurrency is still relatively new and no one knows its future as an accepted currency in the global economy, an indisputable fact is that Blockchain technology will transform the world in ways we never imagined with technology such as Web 3.0, MachineFI, GameFI, and DeFI. Since I started Winebid.com back in 1997, I have not had this overwhelming feeling of intrigue, excitement, and fascination with a disruption in our economy and literally the way we all function in a society. Fortunes will be made, and sovereign countries will be forever changed, and may even dissolve as a result. While the alternative investment options in this space are limited, I am committed to sourcing a reliable expert in the space to invest. Stay tuned on this topic in future newsletters.
Alternative investments can be very risky. I encourage everyone to consult with experts, do your own homework, and trust your instinct. If it’s too good to be true, it probably is. Having part of your portfolio exposed to unique investment offerings with competent and trusted sponsors may find you waking up one day, living out your dreams because you made the right choices earlier, than later. And if you ever want to grab a cup of coffee and talk alternative investments, I am always ready for that conversation!