Alternative Investments

Private capital (private equity and private debt), real assets (real estate, infrastructure, natural resources/commodities), hedge funds, and digital assets.

They tend to feature greater illiquidity, use of leverage, specialized/active strategies, narrow specialization, less regulation and transparency, and higher fees.

Privately negotiated financing including private equity (PE) and private debt — capital raised outside public markets.

Direct investment (own the asset directly), co-investment (invest alongside a fund in a specific deal), and fund investment (commit capital to a managed fund).

Direct gives maximum control with no external fees but needs expertise; fund investment offers diversification and access but the highest fees and least control; co-investment falls between, with lower fees than fund investing and more control.

A limited partnership, with a general partner (GP) who manages the fund and limited partners (LPs) who provide most of the capital with liability limited to their investment.