Typical alternative investments
Real estate: Direct ownership of a home or an income-producing property, private real estate funds, or development joint ventures. REITs are an alternative option accessible to retail investors seeking diversification from the stock markets, though they have become increasingly correlated to the markets.
Private equity: Owning equity securities in companies that are not exchange listed. Deals typically include leveraged buyouts (taking public companies private), distressed investments (debt and equity that may be heading toward bankruptcy), and venture capital (initial funding for new and untested ideas).
Hedge funds: Various trading strategies designed to outperform the market and provide insurance against downturns in certain markets. Originally designed to protect against downturns by betting against the market, hedge funds have evolved to also make predictions based on technical analysis and the outcomes of world events.
The purpose of the Woodfine partnerships is to combine the benefits of direct investments, private real estate funds, and development joint ventures into a single vehicle that offers strong capital appreciation and high distribution yields, while at the same time providing all the transparency and liquidity that retail investors require.
Public Non-Listed Real Estate
An alternative to exchange-traded investments or direct real estate ownership
Allows investors to participate as a proxy developers
Offers both capital appreciation through the developer’s profit and higher income through procuring the buildings at cost
Is designed to act as a hedge against listed securities in the alternatives section of a well-diversified portfolio