Big institutions like Harvard Endowment managed by David Swenson allocate up to 75% into alternatives. David Swenson has written several classic books about his investment methodology introducing alternatives to the investment community. In fact, it has been Swenson’s work that converted me into including alternatives. Whether it is private equity, angel investments in start-up businesses, real estate or alternative income, by virtue of their size and sophistication, the institutions are adding alternative sources of diversification.

Individual advisors

Individual advisors have an increasing awareness of how to best utilize alternatives. In my case, my clients wanted to invest into first real estate almost 30 years ago, then we included angel investing about 13 years ago. Over these years, my experience, education and utilization of many alternatives has increased my comfort level and I now recognize the importance of using alternatives because of their many investment benefits. My clients take advantage of the two funds I manage specializing in equity investments (link is to the PPM for this Fund), including real estate plus angel investments and then the 2nd fund focuses on market loans or alternative income (link is to the PPM for this fund).

High Net Worth and Ultra HNW family offices

High Net Worth and Ultra HNW family offices have have diversified into many alternatives forever. Typically, they hire experts in many alternative endeavors, many times focusing on international diversification and cut out the middle manager by investing directly after performing rigorous due diligence. Learn more