Alternative Assets & Investments

As traditional markets become increasingly volatile and saturated, alternative investments provide a pathway to diversify portfolios, enhance returns, and preserve wealth. At HUDSONPOINT capital, our solutions span a wide range of alternative assets, including private equity, hedge funds, real estate, venture capital, private credit and structured products. Unlock the full potential of alternative investments through innovative management strategies and services.

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What Are Alternative Assets?

Alternative investments are financial assets that fall outside traditional categories like stocks, bonds, or cash. Alternative investment services encompass a wide range of asset types, including pre-IPOs, real estate, private equity, venture capital, hedge funds, private credit, and structured products..

Unlike conventional investments, alternative assets offer unique opportunities for diversification and often provide returns uncorrelated with stock market performance. This distinctive characteristic makes alternative assets essential for any investor seeking resilience and growth in their portfolios, no matter what the markets may bring.

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How Are Alternative Investments Different?‍

By providing exposure to markets and opportunities unavailable through traditional investments, alternative investments unlock the potential for higher returns and portfolio stability. Alternative assets diverge from traditional investments in several key ways:‍

Diverse Asset Classes

Alternative investments offer exposure to various markets, from tangible assets like real estate to intangible ones like private equity. These diverse alternative asset classes enable investors to tap into unique opportunities that align with their long-term goals and personal interests.‍

Uncorrelated Returns

Unlike stocks or bonds, alternative investments are often less influenced by market volatility, offering potential stability during economic downturns. For instance, hedge funds specializing in commodities may thrive during periods of inflation. The uncorrelated nature of these assets allows them to act as a buffer against broader market fluctuations, making them especially valuable during periods of economic uncertainty. Alternative investment management strategies are designed to capitalize on these differences in performance patterns, ensuring that portfolios remain resilient even when traditional markets falter.‍

Exclusive Access

Historically, alternative investments required significant capital, making them accessible only to institutional investors or high-net-worth individuals. Innovations like SPVs have democratized this space, enabling more investors to participate. For example, pre-IPO opportunities and private equity partnerships often require substantial minimum investments but offer the potential for outsized returns.

Why Most Investors Overlook Alternative Investments

Despite their significant advantages, alternative investments are often underutilized due to common misconceptions and perceived barriers. Many investors mistakenly believe that these assets are too complex or specialized for them to navigate effectively, leading to hesitation.

Alternative assets are often less liquid than traditional investments like stocks and bonds, meaning they cannot be quickly sold or converted into cash, which necessitates longer-term commitments. Historically, the high minimum capital requirements for entry have also limited access to these opportunities, with many investments requiring millions of dollars to participate.

HUDSONPOINT capital streamlines the process of identifying and investing in alternative assets. By pooling client resources, HUDSONPOINT allows qualified investors to access potentially lucrative opportunities with reduced minimum commitments. This innovative approach opens the door to a world of alternative investment solutions once reserved for institutions and the ultra-wealthy.

What are Special Purpose Vehicles?

Special Purpose Vehicles (SPVs) are financial entities created to pool investments and provide access to opportunities that might otherwise be out of reach for individual investors. SPVs are especially useful for alternative investments, where minimum capital requirements can be steep, and direct access to some assets, such as pre-IPOs or private equity, is typically reserved for institutions.

SPVs act as intermediaries, gathering capital from multiple investors and aggregating it into a single investment vehicle. This pooling mechanism enables individual investors to participate in opportunities that would normally require millions of dollars to access.

For instance, instead of needing $10 million to invest in a hedge fund or private equity round, an SPV can lower the barrier to entry to $100,000 or less for each participant.

HUDSONPOINT capital leverages SPVs to democratize alternative investments, making them more accessible while maintaining high-value opportunities for our clients. SPVs also simplify the process for investors, consolidating administrative tasks like alternative investment management and reporting, allowing you to focus on your financial goals.

The Benefits of Alternative Investments

Traditional investments with alternatives

“Efficient frontier movement” models consistently demonstrate that incorporating alternatives into a portfolio improves both risk-adjusted returns and overall performance. Many investors turn to alternative assets for their unique advantages.

The power of private markets can be easily seen by looking at risk and return vs. public markets:

Each data point represents an index. All data points use index returns Jun 2004 – Jun 2024 except for private credit which starts Oct 2004 (earliest available). Appraisal-based valuations may be subject to smoothing bias, in which case appraisal-based volatility may be understated. Private equity refers to Burgiss All Buyout Index. Private real estate refers to NFI-ODCE Index. Private credit refers to Cliffwater Direct Lending Index. Private infrastructure refers to Burgiss All Infrastructure Index. Indexes are unmanaged and do not take into account fees or expenses. Past trends do not imply, predict or guarantee future results.

True Diversification

Alternative assets reduce correlation with traditional investments, providing stability during market turbulence. Alternative investment solutions often perform independently of stock or bond markets, creating a safety net during economic downturns or periods of heightened volatility. By introducing alternative investment management strategies, investors can mitigate the risks associated with overexposure to a single asset class.

Lower Volatility

Many alternative investments, for example, real estate, experience smaller price swings than stocks. Alternative assets like private credit are particularly appealing for wealth preservation, as they tend to provide consistent income streams while avoiding the dramatic ups and downs of public markets.

Stabler Returns

A balanced portfolio that combines traditional and alternative assets often outperforms portfolios relying solely on conventional investments. Alternative investment funds can enhance returns by tapping into sectors with growth potential that traditional markets might overlook. Furthermore, these funds often capitalize on long-term trends, ensuring a more predictable performance over time.

Tax Efficiency

Certain alternative investments, examples being real estate or venture capital, offer unique tax advantages such as depreciation benefits or tax deferrals. Alternative investment management firms specialize in structuring these opportunities to maximize after-tax returns for investors.

Unique Opportunities

Hedge funds, private equity, and pre-IPOs offer avenues unavailable to retail investors in traditional markets. Alternative assets allow wealthy investors to access markets and strategies that are often closed to the general public. For example, pre-IPOs can enable participation in transformative business ventures before they reach the public domain, while hedge funds employ complex strategies designed to generate alpha regardless of market conditions.

Types of Alternative Investments

Alternative investments encompass a broad spectrum of opportunities, each offering unique advantages and tailored strategies to meet different financial goals.

From assets rooted in tangible value to sophisticated financial instruments, these investments provide avenues to diversify portfolios, hedge risks, and unlock growth potential:

Pre-IPOs

Pre-IPO investments involve purchasing shares in companies preparing to go public, often in the final stages of their private funding rounds. These opportunities offer the potential for substantial returns, as early-stage investors can benefit from significant valuation increases once the company is listed on the stock market.
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HUDSONPOINT capital provides access to pre-IPO shares through a carefully vetted process, targeting companies with robust financials, innovative products, and high-growth potential.

About Pre-IPOs

Private Equity

Private equity focuses on investments in established private companies seeking capital for growth, restructuring, or market expansion. These companies are typically in mature industries and offer the potential for strong returns over a medium to long-term horizon.
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HUDSONPOINT capital evaluates private equity opportunities with a focus on companies demonstrating solid financials, operational efficiency, and scalability, helping clients capture value from transformative business strategies.

About Private Equity

Private Credit

Private credit involves lending capital to businesses outside of traditional bank financing, often through direct lending or mezzanine debt. These investments typically provide steady income streams through interest payments and are less volatile than equity markets.
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HUDSONPOINT capital offers access to private credit opportunities, focusing on businesses with strong fundamentals and the capacity to meet their repayment obligations.

About Private Credit

Real Estate

Real estate is often considered a cornerstone of alternative investments due to its ability to hedge against inflation and provide steady cash flow. Real estate investments range from residential and commercial properties to industrial assets and real estate investment trusts (REITs). These assets generate returns through rental income, property appreciation, or a combination of both.
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At HUDSONPOINT capital, we focus on properties in high-demand areas and underperforming assets with the potential for revitalization, ensuring a strong balance of growth and stability.

About Real Estate

Venture Capital

Venture capital investments target early-stage startups with innovative products or disruptive business models. While these opportunities carry higher risk, they also provide the potential for exponential growth.

HUDSONPOINT capital connects investors to carefully selected startups in industries such as technology, biotech, and fintech, enabling participation in the development of tomorrow’s market leaders.

About Venture Capital

Hedge Funds

Hedge funds are professionally managed funds that utilize advanced strategies to achieve market-beating returns. These funds are known for their flexibility, and managers can invest in a variety of assets, including equities, derivatives, and commodities. They often employ tactics like short selling or leveraging to maximize returns depending on market conditions.
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HUDSONPOINT provides access to hedge funds with proven track records, offering clients an opportunity to benefit from these dynamic investment vehicles.

About Hedge Funds

Risks of Alternative Investments

Alternative investments present exciting opportunities but also come with certain inherent risks. Economic shifts, for instance, can affect performance across various asset classes, requiring careful navigation. Valuation challenges can also arise, particularly with private or niche assets, where determining true market value can be complex.

Illiquidity is another consideration, as many alternative assets cannot be quickly sold or converted to cash, demanding a longer-term commitment from investors. Additionally, some investments, such as real estate, involve leverage—using financing to amplify returns—which can equally magnify potential losses.

HUDSONPOINT capital addresses these risks through a disciplined approach. By conducting thorough due diligence, diversifying portfolios, and tailoring investments to align with each client’s financial goals and risk tolerance, we ensure that the opportunities presented by alternative investments are pursued with care and precision.

Making Alternative Investments Accessible

At HUDSONPOINT capital, we specialize in breaking down the barriers to alternative investments. Using SPVs and other pooling strategies, we lower the entry point for qualified investors to $100,000, far below the millions traditionally required for alternative investment funds.

For over 50 combined years, our Wealth Concierge Services have guided clients toward financial prosperity by:

Offering access to diversified alternative investment services.
Carefully vetting alternative investment management to align with individual goals and risk tolerance.
Structuring alternative investment funds to maximize value and long-term returns.

With HUDSONPOINT, alternative investing becomes both accessible and seamless.

Let’s find the right investment solutions to meet your goals

HUDSONPOINT capital's team of professionals will help you discover the world of alternative investments.

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HUDSONPOINT capital may only conduct business with residents of the states and/or jurisdictions for which they are properly registered.

Securities offered through Arete Wealth Managment, LLC member FINRA/SIPC. Investment advisory services offered through Arete Wealth Advisors, LLC an SEC registered investment advisory firm.Investments may lose value. Not FDIC insured.

Investments may lose value. Not FDIC insured.

“Important Consumer Information: This communication is strictly intended for individuals residing in the states in which their representatives have securities registration, insurance licenses, and if applicable, are registered as an investment adviser representative.

“Investing involves risk including loss of principal. Alternative Investment represent speculative investments and returns from some alternative investments can be volatile and you may lose all or a portion of your investment”

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