Alternative Investments may include futures funds, hedge funds, venture capital, and private equity. The Gentry Way incorporates these types of investments in our client portfolios because we believe asset classes such as these can provide supplementary, non-market correlated returns that are differentiated from the commonplace investing trends pervasive in today¹s advisor marketplace.
Our overall goal may be to utilize styles that tend to have either a hedging mechanism in place and/or have not historically moved in tandem with the broad stock or bond indexes. We also seek out strong relationships and opportunities with other firms to capitalize on niche value propositions.
From a private equity perspective, examples of investment strategies may include venture capital, in which an investment is made in early stage companies; growth capital, in which a minority investment is made into a private company for purposes of expansion; and mezzanine capital, which may take the form of subordinated debt or preferred equity.
The typical goal of a private equity investment is to realize some type of exit strategy such as through a sale of the company or perhaps a public offering. Additionally, certain investments may seek a return through the underlying merits of the particular company without pursuing a sale or public offering.