'Alternative investment' explained
Alternative investments include private equity, hedge funds, property, venture capital, commodities, loans to private companies all the way through to art, fine wine and music royalty rights. They are investable assets which are the alternatives to the traditional asset classes: equities, bonds and cash.
Alternative investments are often less liquid than their traditional counterparts as they often cannot be traded on a public exchange and the 'hold period' of the investment can be longer than traditional assets. Investors expect higher returns for this illiquidty. This is known as the illiquidity premium (or indeed, the liquidity premium).
At Connection Capital we provide private uk investors with access to institutional quality alternative investments.