top of page

The Power of Alternative Investments

Private markets can help boost returns, reduce volatility, and diversify your investment portfolio.

Private Market Portfolio

Traditional Portfolio

$10K

Screenshot_2024-06-08_at_8.30.12_PM-removebg-preview.png

$2.3M

$167k

Year 0

Year 40

What are Alternative Investments?

Alternative investments (also called private market investments) are all assets that fall outside the traditional categories of stocks, bonds, or cash. These investments are different because they aren’t available to everyday retail investors on public exchanges. Instead, they have been historically only accessible to wealthy individuals or institutional investors.

Private Credit

Loans to businesses or individuals outside traditional banks

Net annualized returns

9%

10 year

Private Equity

Investing directly in private companies or startups

15.3%

Net annualized returns

20 year

Real Estate

Investing in existing properties and new development projects

Net annualized returns

10.4%

10 year

Venture Capital

Funding early-stage companies with high growth potential

23.5%

Net annualized returns

25 year

Why the Wealthy Invest in Alternatives

Higher Returns

The wealthy choose alternative investments because they have historically offered higher returns than traditional investments.

Portfolio Diversification

These investments help spread risk by diversifying their portfolios beyond just stocks and bonds.

Greater Efficiency

Private markets have historically offered greater return for each unit of risk, similar to better miles-per-gallon with a car.

JP-Morgan-Chase-Logo.png

The 2024 J.P. Morgan Private Bank survey reported that 45% of the average portfolio allocation among the globe’s wealthiest families is directed towards alternative investments.

14.6%

Private Market Portfolio

7.3%

Traditional Portfolio

Historical Performance

Over the last 20 years, private markets have consistently outperformed the traditional portfolio of stocks and bonds. While the 60/40 (Stocks/Bonds) portfolio has averaged 7.3% annually, alternatives have consistently seen returns between 11-17% per year.

4-6X

Higher 40 year returns

Lowest Annualized Performance

1995-2021

2.5%

-5.7%

Private Equity

Buyout

MSCI World Index (Stock Market)

Greater Efficiency

Private markets provide downside risk mitigation given their lower volatility relative to public markets. For example, private equity has an expected return that is 44% higher than U.S. equities, but with 45% less risk as measured by the standard deviation of return. Similarly, private credit has an expected return that is 54% higher than high yield—bonds with 61% less risk.

JP-Morgan-Chase-Logo_edited.png
BlackRock-logo_edited.png

How much should I allocate to private markets?

Investment managers like BlackRock recommend supplementing your portfolio of stocks and bonds with up to 20% private market alternatives, while J.P Morgan reported in a 2024 survey that the wealthiest families in the word allocate 45% of their portfolios to alternative investments. 

Ready to Start Investing?

Screenshot_2023-06-12_at_10.25.19_PM-removebg-preview.png

Investing like the rich, made simple.

  • Instagram
  • Facebook
  • LinkedIn

The information provided on this website is for general informational purposes only and does not constitute an offer to sell or a solicitation to buy any securities or investment products. Investments available through Venturevest are offered under applicable exemptions in accordance with Canadian securities laws and are subject to regulatory requirements. Venturevest partners with multiple Exempt Market Dealers to ensure full compliance with Canadian securities laws. All offerings facilitated through our platform are vetted and structured to meet the highest regulatory standards, providing investors with a secure and compliant investment experience. All investments carry risks, including the potential loss of principal. Past performance is not indicative of future results. Investors are advised to carefully read all offering documents and consult with a licensed financial advisor or other professional before making any investment decisions. Access to certain investment opportunities is restricted to eligible or accredited investors as defined under applicable securities laws. Venturevest does not guarantee the availability, performance, or suitability of any investment and does not provide investment, financial, legal, or tax advice. For further information regarding eligibility, partnerships with EMDs, and applicable regulatory requirements, please contact Venturevest directly or consult with your legal or financial advisor.

© Venturevest, Inc. All Rights Reserved.

bottom of page