Larry Barocas, CPWA, CRPS, Senior Partner and Managing Director of Snowden Lane Partners, joined Keith Black, Managing Director of RIA Channel, at the CAIS Summit to discuss how accredited and non-accredited investors can benefit from allocations to alternative investments.
Snowden Lane Partners is a financial advisory firm with 60% international clients. The firm advises clients holistically based on their personalized needs and goals.
Barocas believes that alternative investments can be appropriate for all investors, with client allocations ranging from 5% to 30% of assets. Because Snowden Lane clients are primarily qualified investors, they can choose from a wide range of alternative investment vehicles. Investors with longer time horizons or specific tax needs can benefit from long-term investments and drawdown funds, such as in private equity and qualified opportunity zones.
Non-accredited investors may have access to alternative investments through interval funds and collateralized loan obligations (CLOs). While interval funds have limited liquidity, the potential for quarterly redemptions provides greater liquidity than drawdown funds. Hedge funds are becoming increasingly available for all investor types.
Snowden Lane works with clients to build alternative investment allocations across real estate, private equity, private credit, hedge funds, and managed futures. More conservative investors may use alternative investments to reduce portfolio volatility, and growth-oriented investors may focus on higher return sectors.
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