Chris Seveney, CEO of 7e Investments, is at the forefront of the alternative investment space. Recent regulatory changes and technological advancements have paved the way for a variety of alternative asset classes that even non-accredited investors can now access. While this democratization of alternative investments presents exciting new opportunities, first-time investors should conduct thorough due diligence before diving into this world.
Regulatory shifts over the past decade, such as the JOBS Act and updated Regulation A, have enabled companies to raise capital from a wider pool of investors, including non-accredited individuals. This has allowed sponsors to create mass-scale investment opportunities for non-accredited investors, opening up a whole new world of possibilities in the alternative investment space.
Real estate has been a particularly popular alternative investment choice, with platforms like Alts Marketplace allowing individuals to invest directly into funds that were once exclusive to accredited investors. Other alternatives delve into unique physical assets, such as limited-edition sneakers, whiskey and wine casks, and sports memorabilia. Investors can now own a share of racehorses or music royalties, offering exposure to income streams that diverge from traditional investments.
While alternative investments can offer benefits like diversification and income generation, they also come with greater risks compared to traditional stocks and bonds. Illiquidity and the lack of centralized transparency can pose challenges for investors, emphasizing the importance of thorough due diligence. It’s crucial to review offering paperwork, request audited financials, and scrutinize the sponsor’s track record and experience before making an investment.
Additionally, investors should vet the management and integrity of sponsors behind alternative investment opportunities and consult with financial advisors or legal counsel if needed. Understanding the specific asset class being considered and aligning risk tolerance accordingly are key to success in the world of alternative investments. Approach these options with skepticism and start with small investments to minimize risks and enhance returns in the long run.
While alternative investments present new diversification opportunities, success in this space requires diligent research and strategic guidance. Seeking advice from licensed professionals can help navigate the complexities of alternative investments and maximize returns. Ultimately, entering the alternative investment space requires a cautious approach, but with the right guidance and understanding, investors can unlock new avenues for financial growth and stability.
