Alternative Markets

This is one of the most popular options for our clients. More and more investors are shifting to alternatives to boost returns, generate income, provide diversification from traditional investments and achieve their goals. The alternative market may be utilized by large corporations, for example, to provide high limits of coverage over a large self-insured retention (SIR), or by smaller entities participating in a risk retention group (RRG) or group captive program. Note that the distinction between traditional and alternative markets tends to blur over time as many traditional insurers expand their offering of products to encompass alternative-type funding techniques and vice versa.

Alternative assets typically refer to investments that fall outside of the traditional asset classes commonly accessed by most investors, such as stocks, bonds, or cash investments. Due to their alternative nature, these investments may be less liquid than their traditional counterparts and may require a longer investment period before any material value is realized.

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Traditional vs. Alternative Investments

Traditional investments are publicly traded investments in stocks, bonds, or cash. The traditional method of investing is via public markets, where companies sell shares to the general population via stocks exchanges, such as the FTSE, ASX, NYSE, and SSE. These types of investments are heavily regulated by financial authorities such as the SEC (Securities Exchange Commission) or the FCA (Financial Conduct Authority).

An alternative investment is a financial asset that does not fall into one of the three traditional investment categories. Alternative investments are complex and not heavily regulated. For this reason, most alternative asset investments are held by institutional investors or accredited, high-net-worth individuals.

Due to their lack of regulation, private markets are notoriously opaque compared to public markets. For example, private companies are under no obligation to reveal earnings or financial information, or report to shareholders, which means that information on these types of assets can be hard to find. This is why Preqin exists: to bring transparency and facilitate understanding across alternative assets with comprehensive data and best-in-class analytical tools.

According to the Securities Industry and Financial Markets Association (SIFMA), the global equity market capitalization reached $95tn while the outstanding value of the global bond market reached $105.9tn by end of 2023. According to Preqin data, the alternative investment markets reached $10.89tn during that same time period, although other estimates reach north of $13tn.

Wealth Management

The professional management of an individual’s financial assets and investments to help them achieve their financial goals.

Stock Markets

Stock markets are platforms where buyers and sellers trade stocks, which represent ownership in publicly traded companies.

Strategic Partners

Iindividuals, organizations, or companies that form a mutually beneficial relationship to achieve common goals or objectives.

Retirement Plans

Choosing the right retirement plan depends on factors such as your income, employment status, and long-term financial goals. It is advisable to consult with a financial advisor or tax professional who can assess your specific circumstances and guide you in selecting the most suitable retirement plan for your future.

Fixed Rate Bonds

Fixed Rate Bonds can be a valuable addition to an investor’s portfolio, providing stability, income, and diversification. It is advisable for investors to carefully assess their financial goals, risk tolerance, and consult with a financial advisor before making any investment decisions.

Alternative Investments

Investing in alternative investments typically requires a higher level of expertise and due diligence compared to traditional investments. It is important for investors to thoroughly research and understand the specific risks and potential rewards associated with each option.