Fuse Blog

Preferred Vehicles for Illiquid Investments

  • Private investments continue to be positioned as solutions for the challenges facing many investors today—as an inflation hedge, as downside risk protection, for uncorrelated market returns, among other issues.
  • Expanding access to these vehicles within the intermediary channel is the goal for many asset managers.
  • Non-traded REITs are a clear favorite among financial advisors, making the recent headlines around the decision of Blackstone and Starwood to adhere to redemption limits more eye-raising.
  • Liquidity gates exist for a reason. Educating financial advisors, not only to the role these vehicles play in a portfolio, but also the mechanics of their operations, is critical
  • A focus on education will be a driver to broader adoption today, as well as the critical component for long-term success.
  • Asset managers must avoid the pitfalls that led to the rise and subsequent backlash of liquid alternatives.

Advisors’ Preferred Vehicles for Illiquid Investments


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Source: FUSE Research Network, WealthManagement.com