San Juan, Puerto Rico, October 6, 2022 /PRNewswire/ — In today’s dynamic market environment, now is the time for savvy investors to look to investment opportunities in alternative assets. Hedge funds, private equity, real estate, infrastructure and natural resources are among the asset classes that are giving investors unprecedented access to new fund structures with diverse risk and return characteristics.
Historically, alternative investing was only popular with institutional investors such as pension funds, endowments and foundations, but more recently several new alternative funds and direct investment opportunities have been launched for investors. individual and family offices.
It is clear that the industry is growing at a record pace. Preqin reports that total assets under management in the alternatives industry are expected to reach $23.21 trillion by 2026, against $13.32 trillion in 2021. This bullish sentiment is echoed by Goldman Sachs which notes that “the market for assets that are not publicly traded has roughly doubled over the past five years to about 10 trillion dollarsaccording to data from consulting firm McKinsey & Co. and data provider Preqin.
Vivaris Capital’s VICAN fund is an example of an alternative asset investment strategy that offers investors access to institutional-grade private equity investments with the potential for growth and high returns while securing their capital and providing cash. He aims to be the disruptor the industry needs during this time of recession, inflation and revaluation.
Top 10 Benefits of Increasing Portfolio Allocations to Alternative Investments, as Described by the CEO of Vivaris Capital J. Christopher Mizer in a recent Forbes Council article are:
1. Diversification – Diversification broadens portfolio exposure to maximize return opportunities and avoid over-allocation to a particular asset class. As seen during the Great Recession, the over-allocation to financial stocks and real estate had a huge impact on investment portfolios. Broader diversification could have limited the losses of either of these asset classes.
2. Better valuations – Alternative assets offer the opportunity to invest in companies based on private company valuations which are generally much lower than those of comparable public companies due to the inherent lack of liquidity.
3. Higher growth – In terms of income, profits and value creation, investing in alternative assets that are experiencing rapid growth is more attractive than investing in more mature listed companies with weaker growth prospects.
4. Reduced operating and infrastructure costs – Similarly, alternative investments generally have a much lower cost structure than publicly traded companies.
5. High risk-adjusted returns – Alternative assets are uniquely positioned to generate high-risk-adjusted returns due to their ability to hedge downside risk while maintaining upside potential.
6. High absolute returns – Alternative assets can also generate higher nominal returns than publicly traded stocks and bonds, as the multiplier effects of lower valuations, higher growth and strategic liquidity events compound the effects of the capital appreciation.
seven. Low correlation with stock and public bond markets – Alternatives are generally less correlated to the vicissitudes of public capital markets, with a focus on quarterly performance and the impact of macro factors.
8. Inflation hedge – Stocks and public debentures tend to lose value during periods of inflation because the associated future cash flows are discounted at a higher rate and thus lose value. Alternative assets may be better able to protect against rising prices because their value is created from financial metrics and non-financial strategic steps.
9. Source of passive income – Some alternative assets, such as rental real estate, can generate a reliable stream of income over time with a higher return than dividends or interest payments.
ten. Reduced volatility – Alternative assets can reduce portfolio volatility through the various exposures that each type of asset has to market conditions. The greater the exposure, the more protection a portfolio has against limited holdings of traditional investments.
A portfolio’s exposure to alternative asset opportunities has many benefits, and the corresponding returns and allocations reflect recent market developments and investor preferences. Allocations to alternatives should continue to grow rapidly to offer attractive returns relative to other options.
For more information, visit https://www.vivariscapital.com/call +1.619.727.8497 or email [email protected].
THIS DOCUMENT IS PROVIDED TO INVESTORS AND INVESTMENT ADVISORS FOR THEIR CONSIDERATION AND IS INTENDED FOR INFORMATIONAL PURPOSES ONLY – IT IS NOT AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITY OR ANY INTEREST IN A PRIVATE FUND SPONSORED OR MANAGED BY VIVARIS CAPITAL, LLC (“VIVARIS“), SUCH OFFERS CAN ONLY BE MADE BY DELIVERY OF VICAN FUND LLC’S CONFIDENTIAL PRIVATE PLACEMENT MEMORANDUM (THE “FUNDS“) AND SUBSCRIPTION AGREEMENT (COLLECTIVELY, “OFFER MATERIALS“) TO A QUALIFIED RECIPIENT. BEFORE INVESTING IN THE FUND, QUALIFIED AND APPROPRIATE INTERESTED PARTIES SHOULD CAREFULLY REVIEW THE OFFERING MATERIALS FOR INFORMATION ON THE INVESTMENT, INCLUDING RISKS, CHARGES, CONFLICTS OF INTEREST AND EXPENSES.
ALTHOUGH MANY IDEAS EXPRESSED IN THIS PRESENTATION ARE DISCUSSED IN A FACTUAL WAY, THE DISCUSSION REFLECTS ONLY THE CONVICTION OF VIVARIS REGARDING THE MARKETS IN WHICH THE FUND WILL INVEST IN FOLLOWING ITS INVESTMENT STRATEGIES DESCRIBED IN THE OFFERING DOCUMENTS. THE OPINIONS OF VIVARIS EXPRESSED HEREIN ARE SUBJECT TO CHANGE. ALL DESCRIPTIONS OF THE FUND’S INVESTMENT STRATEGY HEREIN ARE IN SUMMARY FORM, ARE INCOMPLETE AND DO NOT INCLUDE ALL INFORMATION NECESSARY TO EVALUATE ANY POTENTIAL INVESTMENT. INVESTMENTS IN ANY FUND MANAGED BY VIVARIS INVOLVE SUBSTANTIAL RISKS, SOME OF WHICH ARE DISCLOSED IN THE OFFERING DOCUMENTS. ONLY BY CAREFULLY REVIEWING AND CONSIDERING THESE FACTORS AND THE REST OF THIS FUND’S OFFERING MATERIALS (IN ADDITION TO OTHER INDEPENDENT INVESTIGATIONS) CAN AN INVESTOR DETERMINE WHETHER THESE RISKS, TOGETHER WITH EXPERIENCE AND COMPENSATION, AND THE CONFLICTS OF INTEREST OF VIVARIS AND OTHER INFORMATION CONTAINED ARE ACCEPTABLE TO THE INVESTOR.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS AND THERE IS NO GUARANTEE THAT AN INVESTOR’S INVESTMENT OBJECTIVES WILL BE ACHIEVED OR THAT AN INVESTOR WILL NOT LOSE MONEY BY INVESTING IN THE FUND. THE ACCURACY AND COMPLETENESS OF THE INFORMATION CONTAINED HEREIN IS NOT GUARANTEED AND HAS NOT BEEN VERIFIED BY ANY THIRD PARTY, AND THE FUND RELYS IN PARTICULAR ON PERFORMANCE INFORMATION PROVIDED TO IT BY THE INVESTMENTS UNDER -JCENTS FROM THE FUND. INVESTMENTS MAY FLUCTUATE AND THE PRICE OR VALUE OF ANY SECURITIES OR INVESTMENTS MAY GO UP OR DOWN.
NO OBLIGATION TO UPDATE. NEITHER VIVARIS, THE FUND, NOR ANY OF THEIR AFFILIATES ASSUME ANY OBLIGATION TO UPDATE THE INFORMATION CONTAINED HEREIN. FOR EXAMPLE, THE INVESTMENT OBJECTIVES, METHODS AND LIMITS SUMMARY HEREIN REPRESENT THE CURRENT INTENTIONS FOR THE FUND. HOWEVER, DEPENDING ON CONDITIONS AND TRENDS IN THE SECURITIES MARKETS AND THE ECONOMY GENERALLY, THE FUND MAY, SUBJECT TO ANY LIMITATIONS DESCRIBED IN THE OFFERING DOCUMENTS, PURSUE ANY PURPOSE, EMPLOY ANY TECHNIQUE OR PURCHASE ANY KIND OF VALUE WHICH IT CONSIDERS APPROPRIATE AND IN THE BEST INTERESTS OF THE FUND.
FORWARD-LOOKING STATEMENTS. THIS DOCUMENT MAY CONTAIN FORWARD-LOOKING STATEMENTS BASED ON VIVARIS’ EXPECTATIONS AND PROJECTIONS REGARDING THE METHODS BY WHICH VIVARIS PLANS TO INVEST THE CAPITAL OF THE FUND. THESE STATEMENTS ARE SOMETIMES INDICATED BY WORDS SUCH AS “EXPECTS”, “BELIVES”, “WILL” AND SIMILAR PHRASES. FURTHER, ANY STATEMENTS THAT REFER TO EXPECTATIONS, PROJECTIONS OR CHARACTERIZATIONS OF FUTURE EVENTS OR CIRCUMSTANCES, INCLUDING ANY UNDERLYING ASSUMPTIONS, ARE FORWARD-LOOKING STATEMENTS. THESE STATEMENTS ARE NOT GUARANTEES OF FUTURE PERFORMANCE AND ARE SUBJECT TO CERTAIN RISKS, UNCERTAINTIES AND ASSUMPTIONS THAT ARE DIFFICULT TO FORECAST. ACCORDINGLY, ACTUAL RETURNS MAY DIFFER MATERIALLY AND INEQUALLY FROM THOSE EXPRESSED OR IMPLIED IN ANY FORWARD-LOOKING STATEMENT DUE TO VARIOUS FACTORS.
NO REPRESENTATION AS TO THE ACCURACY OF THE INFORMATION. CERTAIN INFORMATION CONTAINED HEREIN HAS BEEN PROVIDED OR OBTAINED BY THIRD PARTY SOURCES. ALTHOUGH VIVARIS BELIEVES THESE SOURCES TO BE RELIABLE, NEITHER VIVARIS NOR THE FUND CAN GUARANTEE THE ACCURACY OF SUCH INFORMATION AND DO NOT REPRESENT THAT SUCH INFORMATION IS ACCURATE OR COMPLETE.
NO ADVICE. THIS PRESENTATION SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE OR OTHERWISE – IT IS PRESENTED FOR INFORMATIONAL PURPOSES ONLY AND IS NOT INTENDED TO BE A SPECIFIC OFFER BY ANY PERSON TO PROVIDE ANY FINANCIAL SERVICE OR PRODUCT. INVESTORS IN THE FUND WILL ONLY BE MEMBERS OF THE FUND AND WILL HAVE NO OWNERSHIP, PERMANENCE OR OTHER REMEDY AGAINST VIVARIS.
SOURCE Vivaris Capital, LLC