With over $3 trillion in the private investment market, accredited investors have a wide variety of alternative investments from which to choose. When selected properly, these securities can provide an attractive complement to more traditional investment portfolios. However, to consistently achieve the best investment performance, it is important that three things are in alignment:
- Right Investor — Is the investor both Accredited and Suitable for these illiquid and, generally, higher risk investments?
- Right Amount — Is an appropriate amount being committed by the investor?
- Right Security — Does the security and its inherent investment characteristics meet this investor’s goals?
Carofin believes that when the right investors allocate the right amount to the right security, private investments can be a great way to diversify their portfolios.