Wealth is created not only in the public markets, but also by private businesses. The Canadian Exempt Market raised $149 billion in capital in 2011 alone. The world’s most successful institutions and high net worth investors have been investing in this space for generations and have achieved above average rates of return utilizing an asset mix combining traditional and private and alternative investments.
The largest and most successful institutions in the world like the Canada Pension Plan (CPP) which manages over $183 Billion for the benefit of every Canadian has altered their asset mix in recent years to include private/alternative investments.
* As at June 30, 2015, Harvard Endowment 2015 Annual Report
** As at June 30, 2015, The Yale Endowment 2015 Annual Report
*** As at June 30, 2015, Bloomberg
Private and Alternative Investing as a complement to your public portfolio should be carefully considered with your Mandeville advisor.
Private and Alternative Investing is an uncorrelated asset class, which can provide a source of diversification, and dampened volatility to the rest of your public portfolio.
Private and Alternative Investing can be illiquid for periods of time (meaning you cannot redeem your investment if you need it – days, weeks, months and sometimes years).
Private and Alternative Investing can be illiquid and aims to take advantage of any “illiquidity discounts”