Private Companies & Alternatives

PRIVATE COMPANIES & ALTERNATIVE INVESTMENTS STRATEGY

The Private Companies and Alternative Investments Strategy targets Pre-IPO companies, start-ups, and mature private companies and involves investing directly in privately held firms at different stages of growth. These investments offer the potential for substantial returns, particularly if these companies grow significantly or go public. However, such a strategy also carries higher risk and liquidity constraints, making it more suitable for investors with a higher risk tolerance and longer investment horizon.

Key Elements of the Strategy:

Stage-Specific Investment: Investing in private companies at different stages – start-ups, mature private companies, and pre-IPO businesses – requires different risk tolerance and return expectations. Start-ups can offer higher potential returns but with higher risk. Mature private companies may provide stability, while pre-IPO investments can offer a shorter path to potential liquidity events.
Due Diligence: Thorough due diligence is crucial, as it involves examining the company's financial health, business model, management team, competitive landscape, growth potential, and more. For pre-IPO companies, one should also understand the company's path and timeline to going public.
Long-Term Investment Horizon: Investing in private companies often requires a long-term commitment, given that these investments are typically illiquid and can take several years to yield returns.
Diversification: Investing across private companies at various stages of growth and from different industries can help manage risk.
Active Management: This strategy requires active management, with ongoing monitoring of company performance, industry trends, and economic conditions. Timely adjustments may need to be made based on the changing market or company-specific developments.
Risk Management: Investing in private companies carries significant risks. However, these risks can be managed through due diligence, diversification, and aligning investments with an investor's financial goals, risk tolerance, and investment horizon.

Summary: The Private Companies and Alternative Investments Strategy encompassing pre-IPO, start-ups, and mature private companies can offer significant growth potential. However, it's also marked by higher risk, illiquidity, and complexity. Investors should have a clear understanding of these risks, and this strategy should align with the investor's overall financial goals, risk tolerance, and investment timeline.

Strategies Overview

At Infinitus Wealth Management, we deliver personalized wealth management strategies that align with your specific financial objectives and individual risk tolerance. Our approach is grounded in a thorough understanding of global financial markets and consistent research, allowing us to construct diverse, resilient, and custom portfolios intended to withstand market volatility while pursuing attractive returns.

We build custom portfolios and offer multiple investment strategies to meet our clients' unique investment goals. We actively manage several US equity, international equity, fixed income, tax-exempt fixed income, and blended strategies ranging from large-cap to small-cap equity and income-generating strategies.

Asset Allocation: Our investment strategy starts with asset allocation, which we consider the most vital determinant of portfolio returns and risk management. We create a balanced mix of various asset classes, such as equities, fixed income, cash, real estate, and alternatives. The blend is customized to your risk appetite, financial objectives, and investment time horizon.

Diversification: We adhere to the principle of diversification among asset classes and within each asset class. By spreading investments across various sectors, geographic locations, and market capitalizations, we aim to mitigate risk potential.

Risk Management: Risk assessment forms a crucial part of our investment strategy. We continuously monitor and adjust portfolios to manage exposure to market risks. By utilizing advanced risk management techniques and tools, we ensure your portfolio aligns with your personal risk tolerance and long-term objectives.

Tactical Asset Allocation: We go beyond a static allocation approach by employing tactical asset allocation strategies. Our investment team actively adjusts the asset mix in response to short-term market predictions to exploit market inefficiencies or seize new opportunities while maintaining a balance with the strategic asset allocation targets.

Tax-Efficient Investing: Our strategies consider the impact of taxes on your investment returns. We aim to maximize after-tax returns through strategies like tax-loss harvesting, holding investments longer for favorable long-term capital gain rates, and strategically placing investments in tax-advantaged accounts.

Regular Portfolio Review and Rebalancing: Investment is not a one-time action but a dynamic process that requires ongoing oversight. We conduct regular reviews of your portfolio to ensure it remains in line with your goals and risk tolerance. Rebalancing, when necessary, helps maintain the desired level of risk and return.

At Infinitus Wealth Management, we understand that every client's investment journey is unique. As such, we don't offer a one-size-fits-all strategy but instead customize each portfolio to suit your individual needs and preferences. Our team is committed to working closely with you, providing the guidance and resources necessary to navigate the complex world of investing and to help your wealth grow and persevere over time.