Why Alternative Assets

'Alts' are the best-kept secret of sophisticated investors.

Top investment managers recommend allocating a significant part of your portfolio to private markets alternatives. We are here to help you do just that.
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What are alternative assets?

Alternative Assets (also called Private Markets), are, simply put, any investment outside stocks, bonds, or cash is considered an alternative. Most alternatives are not publicly traded on an exchange; instead investments are made on private markets.

The most common alternative investments include:

- Real Estate
- Private Credit
- Private Equity/Venture Capital
- Collectables
- Structured Products

Previously only accessible to institutions, private market alternatives are rapidly becoming a meaningful part of many individual investor portfolios. Alternatives can compliment a traditional portfolio, potentially delivering stronger risk-adjusted returns.

How alternatives fit in your portfolio?

While each portfolio is unique, top investment managers like KKR recommend allocating up to 30% of your portfolio to private market alternatives.

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What are the advantages of alternatives?

While each alternative investment is unique, the following characteristics generally apply across private markets.

  • Diversification

    Portfolio diversification previously meant holding a selection of stocks and bonds. Now investors have access to a broader universe of returns than ever before. Alternative investments tend to move more independently of public stocks and bonds. This means that if public markets fall, your private market investments are less likely to be impacted.
  • Historically higher returns

    Private market investments have historically outperformed public stocks and bonds. This is primarily due to the following:
    Lower liquidity: Private investments tend to have some level of illiquidity — or an inability to be converted to cash at any time. In exchange, investors can be rewarded with higher returns, a concept known as the liquidity premium.
    Longer time horizon: While terms range, alternative assets are often held for multiple months or years. This gives the asset more time to grow and weather any short-term headwinds.
    Active management: Many alternative assets are carefully managed by professional investors who work to generate alpha.
  • Downturn protection

    Private markets have historically outperformed public stocks in every major downturn of the past 15 years.
  • Generally lower volatility

    Private markets tend to be significantly less volatile than public stocks and bonds. This is due, in part, to the non-publicly traded nature of these investments, making them less impacted by day-to-day market noise.

How can Openstone help you?

Openstone provides access to alternative investments previously reserved only for institutions and the ultra-wealthy. We particularly focus on real estate opportunities, the largest asset class in the world. Our mission is to help millions of people generate income outside the traditional public markets. We are committed to making financial products more inclusive by creating a modern investment portfolio.

Private vs. Public Markets:
What’s the difference?

Public Markets
Private Markets

Who can access?

Anyone

Typically qualifying and professional investors only

Types of companies

Public companies, listed in stock markets around the world

Private companies, unlisted private investment opportunities

Available asset types

Stocks, bonds, ETFs, derivatives, all listed assets found on stock markets

Private Equity, Private Credit, Real Estate, Closed-end funds

Minimum investment size

No minimum

Typical minimums*: €100K
Minimums on Openstone: €1K

Real Estate invesments

Only through listed REITs, real-estate investment trusts,

All strategies available : direct and indirect investments, credit, club deals

Access to financial information

Publicly available, reporting available to all including non-investors

Available only to private market investors

Liquidity

High : investors can buy and sell at any time

Low : private investments require a certain time commitment

* some funds have up to €1 million minimums
The benefits of Alternative Assets

A rising significance of the asset class

  • Alternative assets value have tripled in 10 years
  • More diversity with wide range of opportunities
  • High returns than the stock market, less volitility
  • More stability than public investing
  • Public markets no longer reflect the economy
  • Long-term shift towards private markets
The challenges of Alternative Assets

A young and diverse asset class

  • Can be seen as more complex than traded assets
  • Less liquidity, exiting an investment can be hard
  • Financial information can be very heterogeneous
  • Lack of international standards for product offerings
  • Fees on some investment funds can be high
  • Less regulation can mean less protection for investors
Our Alternatives Offerings

More real estate investments than any other platform

Fractionned funds
By pooling investors together, we can lower the investment minimums usually required
Private Equity
Involves buying a property, improving it in some way, and selling it at an opportune time for gain
Private Debt
Wide-ranging loan products backed by assets operated by experienced and well-capitalized real estate firms
Club Deals
A way for investors to pool their financial resources to invest in projects that they could afford on their own
Important information
Openstone is a brand of Innovative Finance SAS, a French corporation registered under no 901549766. Innovative Finance is a registered Financial Investment Advisor (CIF) listed with the Organization for the Single Register of Intermediaries in Insurance, Banking and Finance (ORIAS) under number 23002459. You can check this registration on the ORIAS website, https://orias.fr. Innovative Finance is a member of the National Chamber of Wealth Management Advice (CNCGP), an association approved by the Financial Markets Authority (AMF) whose mail address is: 17, Place de la Bourse 75082 Paris cedex 02 and internet address : www.amf-france.org

Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in significant losses.


Alternative investments in private placements are highly illiquid, speculative, and involve a high degree of risk. Past performance is not indicative of future results. Investors may not get back their money originally invested and those who cannot afford to lose their entire investment should not invest. Prior to investing, carefully consider the respective fund documentation for details about potential risks, charges, and expenses. The value of an investment may go down as well as up. An investment in a private equity ("PE") fund or investment vehicle is not the same as a deposit with a banking institution. Investors receive illiquid and/or restricted membership interests that may be subject to holding period requirements and/or liquidity concerns. Investors who cannot hold an investment for the long term (at least 10 years) should not invest. In the most sensible investment strategy for PE investing, PE should only be part of your overall investment portfolio.