Alternative investment: a new approach to your investments

Modern investors are increasingly looking for ways to diversify their portfolios and maximize returns. In this article, we look at the various types of alternative investments, their advantages, and how Eurazeo Wealth Solutions, a key player in European investment, can guide you in this process.

An alternative investment is any investment strategy that differs from traditional assets such as equities, bonds or residential real estate. These investments include assets such as private equity, commercial real estate, hedge funds, infrastructure and fine art. Their aim is to diversify the portfolio in order to reduce volatility and enhance potential returns.

Alternative investments are increasingly sought-after for their ability to remain unaffected by market performance, providing investors with added security. This diversification is essential to avoid over-reliance on traditional assets, which are often subject to global economic fluctuations.

Investments, particularly in unlisted assets such as private equity, carry high risks, including the possibility of losing the entire capital invested, low liquidity and higher volatility of returns. Before committing yourself, be sure to carefully assess your risk tolerance and consult a financial advisor to adopt an investment strategy tailored to your profile.

Alternative investments cover a wide variety of asset classes, each offering unique opportunities. Discover the main options available to you to diversify your investments and boost returns.

Private equity

Private equity is one of the most popular alternative investments. It involves investing in private companies that are not listed on the stock exchange. These investments can offer very attractive returns, but often require a medium- to long-term investment horizon.

Eurazeo Wealth Solutions is a major player in private equity, offering both individual and institutional investors the opportunity to invest in promising companies and support their growth through tailored funds.

Commercial real estate

Commercial real estate investments are an excellent option for those wishing to invest in tangible assets. Unlike residential property, commercial real estate offers stable income generated by rents paid by companies, enabling investors to benefit from a positive trend in rents while enjoying the added value of the property.

Hedge funds

Hedge funds are investment funds that use sophisticated strategies to maximize returns. These funds are ideal for investors seeking to diversify their sources of income and reduce risk.

Infrastructure

Infrastructure investments offer the potential for stable, predictable returns over the long term. This includes projects such as roads, renewable energies or telecommunications networks. Infrastructure investments are generally stable in the face of economic cycles, and offer regular income from essential services.

Works of art and collector's assets

Works of art and other collectible assets (such as rare wines, luxury watches or classic cars) are investments that attract enthusiasts and investors alike. Although these investments are relatively risky, they can offer impressive returns, especially in times of inflation.

Also read: Best Savings Investments: Strategies and Advice

Alternative investments represent an interesting option for diversifying your investments and boosting your wealth. Find out why many professional and private investors have chosen this route to strengthen their financial strategy.

Portfolio diversification

Diversification is one of the key benefits of alternative investments. By investing in assets that are not correlated to stock markets, you can reduce the overall volatility of your portfolio and increase your chances of positive returns, even in times of economic turbulence.

Long-term return potential

Certain categories of alternative investments have historically delivered higher returns than traditional assets. Private equity investments, for example, have often delivered substantial gains, provided you maintain a long-term investment horizon.

Access to unique opportunities

Alternative investments also offer access to investment opportunities often inaccessible to the general public. These may include innovative projects, fast-growing companies or industry-specific funds.

Like all investments, alternative investments present risks. It's crucial to understand these risks before investing.

• Illiquidity: One of the main risks is illiquidity. Some investments, such as private equity, require you to lock in your capital for several years before you can expect a return.
• Volatility and uncertainty: Alternative investments are not always immune to volatility, especially hedge funds, which use more complex and therefore riskier strategies.
• Expertise required: Investing in alternative investments often requires a certain level of expertise or special knowledge. That's why it's essential to surround yourself with industry professionals.

Alternative investments offer diversified opportunities to grow your wealth outside the traditional channels. Whether through private equity, commercial real estate or other assets, it's essential to understand these investments.

Choosing the right investment strategy

Before investing, it's important to determine your financial objectives, risk tolerance and investment horizon. Alternative investments can require a long-term commitment, so it's a decision that needs to be carefully considered.

Get expert advice

Alternative investments are complex and require in-depth knowledge. Calling on a financial advisor or turning to a specialist investment group like Eurazeo Wealth Solutions will help you maximize your chances of success and benefit from an optimal long-term strategy.

Eurazeo Wealth Solutions: a trusted partner in alternative investments

Eurazeo Wealth Solutions offers a diversified range of investment funds, designed to meet the specific needs of investors, whatever their profile and financial objectives. As a recognized specialist in private equity, our team offers its expertise to support individual investors in selecting suitable investments

Investments, particularly in unlisted assets such as private equity, entail significant risks, including the possibility of losing all or part of the capital invested. We advise you to assess these risks in the light of your personal situation before investing.

Alternative investments represent a strategic opportunity to diversify assets and maximize long-term returns, by investing in assets that are often inaccessible to retail investors, while gaining access to innovative or fast-growing sectors. These investments generally have a longer maturity horizon, but offer strong potential for value enhancement as the companies or projects develop.

It is essential to fully understand the nature of the alternative investments available, their level of risk and the liquidity of the assets before committing yourself. A thorough assessment of your investor profile and financial objectives is strongly recommended.