Alternative investments offer a unique opportunity to diversify your portfolio and potentially earn higher returns than traditional stocks and bonds. However, understanding these investments can be challenging for those new to the world of personal
Alternative Investments
What Are the 3 Stages of Venture Capital Financing?
The venture capital financing stage includes: formative stage financing, later stage financing, and mezzanine-stage financing. The three differ based on at which stage the capital is injected into the startup.For example, formative stage
Private Equity Structure and Fee
Private equity is usually structured as a Limited Partnership (LP) or Limited Liability Company (LLC). Under a limited partnership, there are two groups: limited and general partners. Limited partners commit to capital to be invested by the
Hedge Funds Strategy: Macro, event-driven, relative value, and equity hedge strategies
Hedge funds rely on several strategies to make money. Hedge Fund Research, Inc. (HFRI) divides them into four categories:Before exploring hedge fund strategies, first of all, what is a hedge fund?It is an investment vehicle by
Leveraged Buyout (LBO): How it Works, Funding Sources, Criteria for Target
What's it: A leveraged buyout (LBO) is an acquisition with debt relied upon to finance the purchase. This strategy is usually adopted by private equity firms. They buy companies hoping to profit without relying too much on internal capital.
Private Equity: Examples, Strategies, Targets, Its Ways To Make Money
What's it: Private equity is an investment vehicle focused on buying shares of prospective private companies to gain control over management and other operational changes to increase profitability. Thus, the target company can be sold profitably
Hedge Funds: Examples And What Do They Do?
What's is: Hedge funds are pooled investment funds by private investors, established in limited partnerships, and managed by professional fund managers using various complex strategies to generate above-average returns on investment. They use
The Pros and Cons of Alternative Investment You Need To Know
Alternative investments complement our portfolio, in addition to conventional investments such as stocks and bonds. However, alternative investments have pros and cons, just like traditional investments.For example,
Alternative Investment: Characteristics, Types, Investors, Pros, and Cons
What's it: Alternative investment is an asset or instrument available as another possibility for us to generate returns and accumulate wealth. They do not fall into conventional investment categories such as equity, fixed income, and cash and
Commodity Indexes: A Comprehensive Guide
A commodity index tracks the price movement of a group of commodities. Think of it as a snapshot of how these raw materials, like oil, gold, or corn, perform. This snapshot helps investors understand broader market trends.We understand that
Venture Capital: How It Works, How It Makes Money, Investment Horizon
What's it: Venture capital is capital invested in a new company, startup, or young company, in return for ownership. It is a form of private equity besides leveraged buyouts (LBOs), minority equity, and distressed investing. Venture
Real Estate: Meaning, Types, How to Invest
Real estate comprises land and buildings. They became an investment alternative, both directly and indirectly. This asset class offers the potential for capital appreciation and stable income. Investors hold it as diversified and as an inflation