Alternative assets, which include any non-publicly traded assets, such as venture capital, private equity, real estate, loans, and digital assets may be your answer for more robust returns. These assets help build a diversified portfolio, work well for those with longer investment time horizons and offer the opportunity to accrue above-market returns.
It is those above-market returns that make alternative assets so attractive, yet they have long been considered only accessible to institutional investors and high net-worth individuals. As the rich have gotten richer, the everyday investor has been left with the average market returns. And because so many fast-growing startups are staying private longer, much of the upside is gone by the time they go public.
Alternative assets by the numbers:
This was the amount invested in late-stage deals (Series C, D, E, and onward) in 2018, up nearly 80% from the previous year. With startups remaining private longer, late-stage funding has exponentially increased and has kept non-accredited investors isolated from higher returns. (Source)
Nearly 90% of Yale’s Endowment Fund is allocated to alternative assets, such as foreign equity, venture capital, and real estate. (Source)
Yale’s Endowment Fund—the money Yale has raised from donors and investments and uses for scholarships, salaries, facilities, among other expenditures—has seen a yearly average return of 12.1% over the last 20 years, outpacing a 7.5% return in domestic stocks and a 5.2% return in bonds.
There were 61% fewer IPOs in 2018 than there were during the peak of 1999. (Source)
Did you know?
Do you know you can use your IRA savings to invest in these alternative assets? It has historically been a time-consuming, complicated and expensive process, often leaving you, the owner, confused and frustrated.
There is now an easier, faster, and cheaper way to invest. Let me introduce you to Alto IRA.
At Alto, we have simplified alternative asset investing so you can invest in what you want. We offer the easiest solution to invest and diversify your IRA investments in the same way institutional players like the Yale Endowment do. We’re integrated with a large number of investment platforms such as AngelList, Republic, EquityZen, and more. Simply select an investment opportunity from their website and choose to invest using your IRA.
If you’d like to learn more, have questions, or want to see a live demo, reach us by email at [email protected].