• Alternative strategies, structures and sponsors

    A common mistake is to treat alternative investments as a single asset class. Alternatives include a spectrum of asset strategies and fund structures. Each alternative is designed to deliver certain benefits and comes with its own specific type of risk. Investors should consider the investment strategy, fund structure and investment expertise of a manager before deciding which alternatives to use in their portfolios.

    Alternative investing strategies

    An introduction to alternative investing

    Middle market lending

    Generating incomeAn investment strategy that seeks to provide a steady stream of current income, or yield, over time. through direct investments in private U.S. companies

    Energy and energy infrastructure

    Investing in private U.S. energy and energy infrastructure companies with the goal of long-term income and growth

    Private equity

    Identifying, acquiring and operating private middle market companies with an objective of generating long-term shareholder value


    Understanding ways to invest in alternatives

    Business development company (BDC)

    An investment that facilitates the flow of capital to U.S. middle market companies

    Open-end and closed-end funds

    Mutual funds and other pooled investments that fall under the Investment Company Act of 1940 and are regulated by the U.S. Securities and Exchange Commission

    Interval funds

    An interval fund is a type of closed-end fund that offers liquidity at stated intervals, typically quarterly, semiannually or annually.


    Considerations for selecting an alternative manager

    The manager matters

    The importance of experience and expertise

    Best practices

    How a manager aligns its interests with its investors

    The role of an investment adviser and sub-adviser

    Combining the investment expertise of an investment adviser and sub-adviser can provide a dual layer of expertise and oversight