E1: Introduction to Alternative Assets

Alt Investing Made Easy

In this episode, attorneys Roland Wiederaenders and Sarah Florer delve into the world of private securities and their significance in the world of alternative assets. They stress the importance of defining terms to ensure a comprehensive understanding of private securities and explain that private securities are investments in alternative assets that differ from traditional publicly registered securities. They clearly contrast between private and public securities, each with its registration requirements and ongoing disclosure obligations. This comparison aims to enlighten the audience about the intricacies of this part of the financial world. They also explore the benefits of private securities, such as the potential for small businesses to raise capital and the opportunity for mission-driven investments.

Keywords

alternative assets, private securities, investment advisor, asset allocation, diversification, private equity, hedge funds, commercial real estate, modern portfolio theory, securities, alternative assets, shares of stock, membership interests, limited liability company, investment contract, common enterprise, expectation of profit, entrepreneurial efforts, managerial efforts, democratization of capital, mission-driven investment

Takeaways

• Alternative assets are financial assets that do not fall into conventional investment categories like publicly traded stocks, bonds, or cash.
• Alternative assets include investments in hedge funds, private capital, real estate, natural resources, and infrastructure.
• Private securities, which are associated with alternative assets, have less disclosure, greater complexity, and lower liquidity compared to public securities.
• Alternative assets provide opportunities for mission-driven investments and the democratization of capital.
• Viewers are encouraged to learn more about alternative assets and engage with their financial advisors.

Sound Bites

• "Introduction to Alternative Assets"
• "The Three Main Classes of Alternative Assets"
• "Asset Allocation and Diversification in Alternative Asset Investing"
• "That's like the stock market investing in a share of stock."
• "What you buy, you don't buy a share of stock, you buy membership interest."
• "Was there an investment in a common enterprise?"

Chapters

00:00 Introduction to Alternative Assets

05:06 The Three Main Classes of Alternative Assets

09:24 Asset Allocation and Diversification in Alternative Asset Investing

26:39 Understanding Securities and Alternative Assets

29:25 The Definition of a Security: Elements and Importance

31:51 Democratization of Capital: Investing in Alternative Assets

36:35 Aligning Values and Creating Value with Alternative Investments

39:30 Diversifying Investment Portfolios with Alternative Assets

Credits

Sponsored by
Real Advisers, Austin, Texas

Special thanks to:

Grable Martin PLLC

Red Sun Creative, Austin, Texas

Please visit us: AltInvestingMadeEasy.com

Please contact us: [e-mail]

Roland Wiederanders: [e-mail]

Sarah Florer: [e-mail]

Disclaimer: “This production is for educational purposes only and is not intended as investment or legal advice.”

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