Alternative Investments

Traditional stocks and bonds do not always move independently of one another, which can leave a portfolio exposed during broad market downturns. Alternative investments can provide access to unique opportunities not typically available in daily liquid public markets, offering the potential for enhanced return and yield. Mission Wealth helps clients evaluate whether adding private credit, real assets, or private equity makes sense within their broader portfolio strategy.

Investors relying solely on public bonds and loans may want additional sources of income and diversification. Private and direct credit involves lending capital directly to companies, real estate projects, or specialty finance structures outside traditional syndicated markets, including direct lending, distressed debt, and specialty finance strategies. These investments can provide income through interest payments and help diversify fixed-income exposure beyond what public markets offer.

Investors looking to hold value in physical, cash-flow-generating property may consider real assets such as commercial real estate, infrastructure, energy assets, or timberland. Because these assets depend on underlying physical properties and cash flows rather than public trading activity, they can behave differently than stocks and bonds and offer another layer of diversification.

Investors who want exposure to companies before they are widely accessible in public markets may consider private equity. Private equity comprises investments in privately held companies, or the acquisition of public companies with the intention of taking them private, with funds seeking to enhance company value through strategic, operational, or financial improvements over time.

Because alternative investments carry unique risks and suitability requirements, clients benefit from guidance in constructing a portfolio that fits their long-term financial objectives. Mission Wealth has deep experience helping clients determine how much of a portfolio, if any, should be allocated to illiquid alternatives based on their individual risk tolerance, time horizon, and liquidity needs.

Alternative investments include private equity, real estate, credit, and infrastructure—assets beyond traditional stocks and bonds.

Alternative investments may enhance diversification and provide access to sources of return that behave differently from traditional stocks and bonds. Depending on the investment, alternatives may also offer income or potential inflation protection, but they involve distinct risks and do not guarantee higher returns.

Eligibility depends on the specific investment. Some alternative investments are broadly available, while many private market funds are limited to accredited investors, qualified clients, or qualified purchasers and may require significant minimum investments. We evaluate eligibility and suitability within the context of your broader financial plan.

These involve investing in privately held companies, often through funds, with potential for outsized growth.

Direct real estate investing allows you to invest in income-producing properties that can offer cash flow and long-term appreciation.

Tax treatment of alternative investments varies by asset type and structure. Mission Wealth can coordinate with your CPA to optimize tax outcomes.

Alternative investments can involve less liquidity and higher risk, but also greater return potential. Mission Wealth can help assess how alternatives fit within your risk profile.

Many alternative investments are illiquid, meaning they require longer holding periods. This is an important consideration to review when adding alternatives to your overall financial plan. Our experienced advisors can help structure your portfolio to include alternatives when they make sense as part of your investment lineup.

Yes, we provide access to carefully vetted private market funds that are typically unavailable to retail investors.

Mission Wealth can integrate alternatives strategically into your broader portfolio to enhance return potential, manage volatility, and align with your long-term goals.