Alternative investments refer to assets that fall outside the traditional asset classes of stocks, bonds and cash. They can provide portfolio diversification and have the potential for higher returns. Popular alternative investments include private equity, venture capital, hedge funds, managed futures, real estate, commodities and collectibles. This article explores some of the top alternative investment opportunities available to investors in Philadelphia.
private equity funds Philadelphia
Private equity funds invest in private companies that are not publicly traded on a stock exchange. They can generate significant returns through business growth and efficiency improvements. According to Preqin data, Philadelphia is one of the top regions globally in terms of private equity deal activity. Some major private equity firms headquartered in Philadelphia include Susquehanna Growth Equity and Graham Partners.
Philadelphia venture capital firms
Venture capital provides funding for early stage startup companies in exchange for equity stakes. Philadelphia has a growing community of tech startups and VC firms supporting them. Leading local VC investors include Osage Venture Partners, Ben Franklin Technology Partners and First Round Capital.
Philadelphia hedge funds performance
Hedge funds aim to generate positive returns regardless of overall market conditions using alternative strategies. According to Barclays data, hedge funds based in Philadelphia generally outperformed national averages in 2018. Notable local hedge funds include Cheltenham Capital Management, Boothbay Fund Management and FS Investments.
Philadelphia real estate investment opportunities
Real estate investment trusts (REITs) and rental properties can provide steady income streams and capital appreciation. Philadelphia has an affordable housing market compared to other large metro areas. Top local real estate investment firms include Compass Real Estate, Orianna Equity Partners and Silk Real Estate Group.
In summary, Philadelphia offers attractive alternative investments like private equity, venture capital, hedge funds and real estate for portfolio diversification. Work with a qualified financial advisor to evaluate if such alternative assets match your risk tolerance and investment timeframe.