Private Market Investing.
Some of the most potentially alluring investment opportunities today can be found outside the public markets. Moreover, the market for such investments has been rapidly expanding, even as the public market has been contracting. NuvOak also provides investment advice in alternative investment to qualified clients.
In the year 2000, there were 8,000 publicly traded stocks, and today there’s around 3,700,” Mitch Reiner, founding partner at Altera Investments told US News and World Report. That’s nearly a 50% decline in public investment options in just over 20 years. Meanwhile, according to McKinsey’s Private Markets Annual Review, private market assets under management grew 170% within the last decade.
We get a clear idea of how an investment’s underlying assets might generate cash flows or drive future value. We evaluate scenarios where those assets might become more, or less, valuable or vulnerable.
We compare target yields in alternative investments with those of traditional investments for a sense of the potential risk/reward. We check for the timing of interest payments by calculating a standardized target yield measure, such as the internal rate of return.
We assess payment structures and the timing of payments to clearly understand when and how you should expect to receive payment.
We consider whether any reduced liquidity in an investment is justified by its target rate of return. We compare the expected timing of payments and investment risks with any anticipated liquidity needs you may have as an investor.
We assess the underlying loan’s level of payment and lien seniority by understanding how much capital has priority over the underlying loan’s lender and gauge how the capital stack affects your risk level.
We carefully review any investment’s Private Placement Memorandum and Series Note Supplement or Investment Memorandum and other documents for details concerning an investment’s risk profile. We get a clear sense for how similar assets/collateral have fared in the past and try to determine an expected value of the investment in an adverse situation. We evaluate how diversified the investment is—exposure to a larger variety of assets may help reduce the investment’s concentration risk.
If you want expert advice on building wealth,
feel free to make a complimentary first appointment.