What is a private alternative investment?
An alternative investment is a financial asset that is not classified into conventional investment categories, such as:
Examples of alternative investments:
- Private Equity or Venture Capital
- Hedge Funds
- Real Estate
- Real Assets
When an alternative investment is not traded on the public markets, it is considered a private alternative investment.
Private alternative investments aim to outperform traditional asset classes in terms of risk-adjusted returns while having a low correlation to stock markets, resulting in lower volatility.