Are Alternative Investments Safer?

Are Alternative Investments Safer?
November 4, 2022

Five Reasons Why Are Alternative Investments Considered Safer Than Public Stocks.

o   Transparency: A good Private Equity management team is tasked with reporting to partners regularly (monthly or quarterly) and generally available to the partner via cell phone to answer any questions that arise.  

o   Deeper due diligence: Private Equity platforms are “long term” slow money investments that can take years to research and execute to their fullest.  Average execution time for a Custom Private Equity platform is 5-7 years.  Slow Money means that the program can take years to develop (ie: commercial real estate is not built overnight), but the end result of the efforts are worth the wait.

o   Greater Dedication by Management: If you invest with a private equity platform, your management team is highly dedicated  to the success of the effort.  They generally have a direct financial interest in the success of the venture.  The private equity manager generally has a team member on site, executing the daily activities of the program in person, paying attention to details and supervising the work of contractors to execute the business plan.

 Partners have direct ownership in the assets of the Platform: If you are a common stockholder in a public company, you have no claim on the assets of the company.  If you are a financial partner in a private equity platform (managed by our team) you will have a secure interest in the assets of the portfolio.

o   Risk Management Is Generally More Robust: An experienced management team will develop strategies to manage the risks associated with private platforms.  These techniques generally take the form of natural or artificial hedges against a total loss.

If you would like to know more about Custom Private Equity and our research, please call or text me and we will arrange a discussion.

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