Expanding your investing opportunities
Many think of alternative investments as an asset class only available to a select set of clients. At Key Wealth, we have a different view: Alternatives can help nearly every client pursue their financial goals. With a broad range of investment opportunities we encourage qualified clients to consider the role of alternative investments into their strategy — including hedge funds, private equity, real assets, venture capital, digital assets and non-traditional mutual funds.
Enhancing your financial Strategy
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Our alternative investments teams pursue a broad range of strategies, yet they share a common perspective on value creation. Over the long term, the best means to deliver attractive, uncorrelated returns is to focus on segments where specialized expertise and a partnership approach is rewarded; structural dislocation, capital supply/demand imbalances and complexity prevail; and KWA is focused on providing unique sourcing, information and value-creation advantages. We avoid segments where we believe the competition for alpha is high, the supply of capital is abundant and the potential to deliver differentiated strategies and investment opportunities is low.
Ways to access Alternative Investments
1 / Private equity funds and Equity co-investments capitalize on periods of rapid growth or restructuring by investing in private and certain public companies during various phases of their lifecycle. Historically, private equity has outperformed public equity, offering investors a premium for the additional risks associated with investing in the private markets, including illiquidity, less transparency for investors, higher fees and longer investment horizon.
2 / Hedge funds engage in a wide range of investments and trading strategies not available to traditional asset managers, such as equity long/short strategies and derivative instruments. Adding hedge funds to a portfolio can help provide a buffer for market downturn and assist with capital preservation.
3 / Real estate and tangible asset strategies comprise both actively and passively managed investments in commodities, real estate, infrastructure, agricultural land and natural resources. Investments in real estate and tangible assets often act as additional diversification from stocks and bonds and can serve as a hedge against inflation.
4 / Venture capital (VC) is a form of private equity and a type of financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential. Venture capital generally comes from well-off investors, investment banks, and any other financial institutions.
5 / Digital assets are the digital equivalents of financial assets such as securities, currencies, properties, or commodities, and have emerged as a growing asset class with a renewed rise in investor interest. They are heavily tied to technology and the emerging digital economy. They are often considered uncorrelated to traditional assets.
6 / Credit. Private credit fund and direct lending across non-traditional assets in middle market, real estate, distressed and speciality situation, allows for potential premium returns due to their illiquidity.
