What are alternative or private market investments?
Alternative investment is an investment in asset classes other than public stocks, bonds, and cash. Private market investment is one of the most common types of alternatives.
Why private market?
Private market solutions are gaining traction amongst investors in recent years as they can be powerful tools in helping investors achieve growth, reduce volatility, and provide portfolio diversification.
It encompasses a wide range of assets and strategies including infrastructure, real estate and private equity, pre-IPO. Private market investment is traditionally accessible only to big-ticket institutional investors due to extremely high ticket size. Platforms like Altive breaks the hurdle to US$100k.
Enormous size of the private market previously ignored by retail investors
Private equity net asset value growth outpaced total market cap of listed companies by more than 8 times since 2000. By diversifying into the private market, investors can access one of the fastest-growing asset classes.
*Source: Based on World Bank and Preqin data, as cited in McKinsey & Company’s “Global Private Markets Review 2020.”
Returns captured during pre-IPO far outweighed post-IPO
An example of private market investment offered by Altive is late-stage pre-IPO investment. The graph indicated that more value was captured before a company went IPO*.
*Source: Crunchbase as of Oct 2021
Learn more about the common types of Private Market Products
Pre-IPO Placement
Private sale of large blocks of shares in private companies which target to be publicly listed.
Real Assets
Physical assets such as real estate, energy, and infrastructure.
Private Equity Fund
Directly invest in companies. Alternative form of private financing.
Venture Capital Funds
Pooled investment funds of startups and SME with strong growth potential.
Private Debt
Debts held by or extended to private companies.