Alternative Investments
It is our belief that alternative investments should play an important role in the portfolio of a family office or high-net worth investor. Carefully selected alternative investments provide exposure to unique asset classes, novel investment strategies and excellent managers. In our work with family offices and high-net worth investors, we have developed an approach to alternative investments that takes as its first principle the requirement to minimize expenses for “market/beta” return while searching for managers and opportunities that allow for “excess/alpha” returns. In reality, many alternative investments offer no more than market returns, many times using leverage to recklessly inflate performance. We focus on the real drivers of return in alternative investments - the asset class, the manager’s advantage/edge and the business operations of the manager.
Private Lending
Hard money lending has operated outside of traditional lending for hundreds of years. These lenders historically offer loans to borrowers that do not qualify for bank financing. Hard money/or asset-based lenders simply focus on the value of the asset backing their loan. Conversely, traditional lenders place an emphasis on the debt service-to-income of potential borrowers. Hard money lenders develop an expertise in identifying, valuing and ultimately liquidating assets when loans are unpaid. This type of lending is a very hands on business, and requires much more effort than a typical loan or investment product. In consideration, hard money lenders typically charge at least 2 x the going traditional loan interest rate. In 2010, the typical hard money loan charged 12-15% - while being fully secured by a hard asset like real estate. We have developed an extensive network of brokers, attorneys, accountants, family offices, banks and financing companies that assist in the sourcing and servicing of hard money loans.
We offer our investors access to this investment strategy through a number of private lending funds.
Private Equity
We actively manage many private equity transactions on behalf of our clients. All principles of the firm are experienced business operators. We offer our clients management, transactional and estate planning services for their private equity investments.