Alternative Investment is on the rise as people are looking for other ways to deal with their investments, especially in ways they can easily understand.
An alternative investment is an asset which is not one of the conventional types of investment. These conventional methods of investment include stocks and shares, bonds and cash. The majority of alternative investment assets are held by institutional investors, like Gresham House, or they are accredited, high-net-worth individuals. Those who deal with alternative investments have to be experts because of the complex nature and limited regulations of investments.
Types of Alternative Investment include managed futures, real estate, private equity, hedge funds, commodities and derivative contracts. Let’s look at some others in more detail
Strategic Public Equity
This type of alternative investment looks to invest in publically quoted, smaller UK companies. This is done by using the disciplines, principles and principles that you would usually associate with private equity. It is essentially applying private asset techniques in public markets.
Investors often target companies who are going through changes that they deem positive and aim to work closely with the management teams to make sure the process runs smoothly and successfully.
This is where a company will take control of a client’s forestry assets on behalf of them. The objective here is to use their expertise in order to maximise the returns for the clients from the forestry asset. Furthermore, the underlying capital of the forest will be increased and the income which comes from the harvesting in the forest will be maximised if done correctly, of course.
This type focusses on investing in the growth sector of renewable energy. Interestingly, the renewable energy industry has been facing a lot of growth and transition in the last decade or so. Now, renewable energy is one of the major sources of energy.
Housing and infrastructure
In the UK, the housing market is highly diverse. It is the case that pricing does differ heavily between regions across the nation, with London typically performing very strongly.
However, due to higher charges on stamp duty and Brexit, many investors are very cautious about investing in London. Rather, alternative investment companies point to value in other regions of the UK where the housing market is significantly improving as people are moving out of the capital into these places.
The average number of people under one roof in the UK is likely to become just 2 in coming years. Therefore, it is not suspiring that many are choosing to invest in social housing, in first time buying and retirement homes.