Skip to main content
Category

Alternative Investments

Dec 19
Love0

Preqin: Hedge Fund Launches at 24-Year Low

By Alternative Investments, News, Wealth Management

The hedge fund sector is experiencing a significant decline in new fund launches, with 2024 set to hit a 24-year low, according to data from Preqin. Only 123 funds were launched by the end of Q3, a steep drop from the 2017 peak of 697. This slowdown is driven by challenging fundraising conditions in the U.S. and Europe and tighter regulations in China.

Funds focused on certain niches including insurance-linked securities and cryptocurrencies are bucking the trend. Multi-strategy funds have also demonstrated steady growth, increasing 4% annually since 2017.

The average hedge fund returned 10% through the nine months ended September 2024. Hedge funds have attracted $25.5 billion in new investments during Q3, even with $8.4 billion being distributed to investors over the past year.

Despite the decline in new fund launches, fund closures have reached their lowest point in a decade, signaling industry consolidation and adaptability.

You can access the full Preqin press release at Reuters.com.

Aug 08
Love0

Global Alts Successfully Closes Venture Capital Fund Targeting Strategic Investment in Groq

By Alternative Investments, Press Release, Private Equity

Appleton, Wisconsin

Global Alternative Investment Management LLC (“Global Alts”) is pleased to announce the successful close of its latest venture capital fund, Global Alts SPV LLC- Groq AI fund (the “Fund”) targeting a strategic investment in Groq, a pioneering AI technology company developing chips to run generative AI models faster than conventional processors.

The Fund’s investment in Groq was acquired indirectly through a private investment vehicle participating in Groq’s recent $640M Series D round at a valuation of $2.8B. Groq’s round was led by funds and accounts managed by BlackRock Private Equity Partners with participation from both existing and new investors including Neuberger Berman, Type One Ventures, and strategic investors including Cisco Investments, Global Brain’s KDDI Open Innovation Fund III, and Samsung Catalyst Fund.

About Groq

Groq builds fast AI inference technology. Groq® LPU™ AI inference technology is a hardware and software platform that delivers exceptional AI compute speed, quality, and energy efficiency. Groq, headquartered in Silicon Valley, provides cloud and on-prem solutions at scale for AI applications. The LPU and related systems are designed and manufactured in North America. The unique, vertically integrated Groq AI inference platform has generated skyrocketing demand from developers seeking exceptional speed.

About Global Alternatives Investment Management

Global Alts seeks to provide its clients with opportunistic alternative investments on a global scale. With more companies staying private for longer, Global Alts targets unique investment opportunities into transformative, disruptive businesses through direct investments, secondary market purchases, and co-investments. Since spinning out from its RIA affiliate in 2021, Global Alts has launched six funds, targeting late-stage global technology venture capital, financial technology, and single-purpose funds targeting Indian-based companies. The founding partners of Global Alts have a 25+ year history of sourcing alternative investment opportunities. Using our innovative approach, the Global Alts team excels in creating bespoke one-investor funds tailored specifically for high-net-worth families, foundations and endowments ensuring personalized and strategic investment solutions.

Press & Investment inquiries

Prateek Mehrotra, MBA, CFA, CAIA

Chief Investment Officer

[email protected]

920.785.6010

The press release is for Informational purposes only and does not constitute an offer or solicitation to sell shares or securities in any investment or company. Interests in any alternative investment vehicle are offered only pursuant to the terms of a confidential private placement memorandum (the “Memorandum”), which is furnished only to accredited and/or qualified investors on a confidential basis for their consideration in connection with the private offering. All investments involve risk and potential loss of capital and, unless otherwise stated, are not insured or guaranteed. For additional information on the risks of alternative investments, please visit our website.

Jul 10
Love0

Global Alts Closes Private Equity Fund and Acquires Shares in the National Stock Exchange of India

By Alternative Investments, Press Release, Private Equity

APPLETON, WI July 10, 2024— Global Alternative Investment Management LLC (“Global Alts” or the “Firm”), is pleased to announce the successful close of its latest private equity fund, Global Alts SPV LLC- NSE India (the “Fund”). The Fund has completed the strategic acquisition of shares in the National Stock Exchange of India, Ltd. (NSE), marking a significant milestone for our Firm with this direct investment into the Indian-based company.

About the National Stock Exchange of India, Ltd.

Established in 1992 and known for its state-of-the-art technology and robust trading systems, NSE’s trading platform for equities, derivatives, currencies, debt securities and mutual funds has grown into one of the leading stock exchanges in India and one of the largest exchanges in the world. NSE holds a pivotal role in India’s expanding economy, acting as a catalyst for economic growth by providing a robust, efficient, and transparent market infrastructure that supports the development of businesses, encourages domestic and foreign investment, and enhances financial inclusion.

Growth Potential of the Indian Economy

India’s economy is currently the world’s fifth largest. Due to favorable demographics, government reforms aimed at improving the ease of doing business, and significant infrastructure development, the Indian economy is also one of the world’s fastest growing.  Home to over 1.4 billion people, India recently surpassed China as the populous country in the world. The demographic profile of India is notably young, with approximately 65% of the population under the age of 35. India’s young and rapidly expanding workforce, and a burgeoning middle class with rising disposable incomes offers a vast pool of talent and a growing consumer base with the potential to drive future economic growth.

About Global Alternatives Investment Management

Global Alts seeks to provide its clients with opportunistic alternative investments on a global scale. With more companies staying private for longer, Global Alts seeks to provide its investors with unique investment opportunities into transformative, disruptive businesses through direct investments, secondary market purchases, and co-investments. Since spinning out from its RIA affiliate in 2021, Global Alts has launched five funds, targeting late-stage global technology venture capital, financial technology, and single-purpose funds targeting Indian-based companies. The founding partners of Global Alts have a 25+ year history of sourcing alternative investment opportunities. Using our innovative approach, the Global Alts team excels in creating bespoke one-investor funds tailored specifically for high-net-worth families, foundations and endowments ensuring personalized and strategic investment solutions.

Press & Investment inquiries

Prateek Mehrotra, MBA, CFA, CAIA

Chief Investment Officer

[email protected]

920.785.6010

View Official Press Release Here: https://ereleases.com/y/ndib 

The press release is for Informational purposes only and does not constitute an offer or solicitation to sell shares or securities in any investment or company. Interests in any alternative investment vehicle are offered only pursuant to the terms of a confidential private placement memorandum (the “Memorandum”), which is furnished only to accredited and/or qualified investors on a confidential basis for their consideration in connection with the private offering. All investments involve risk and potential loss of capital and, unless otherwise stated, are not insured or guaranteed. For additional information on the risks of alternative investments, please visit our website.

Jan 02
Love0

Qualified Opportunity Zone Funds

By Alternative Investments

EXECUTIVE SUMMARY

What if you could do well by doing good—using your wealth to help revitalize economically distressed communities and enjoying some impressive tax breaks for your efforts? That’s exactly what you may be able to accomplish through a new type of investment called Qualified Opportunity Funds.

In this month’s Flash Report, Qualified Opportunity Funds: The Latest Way to Do Well by Doing Good, you’ll learn all about how Qualified Opportunity Funds work along with their many benefits. Armed with that information, you can start to determine if these funds make sense for you and your goals—and, if so, how to take the next steps.
Read More

Nov 06
Love0

EWM in the News: Real Assets Adviser Features EWM’s CIO Prateek Mehrotra in Comprehensive Perspective on the Endowment Model

By Alternative Investments, Endowment Index™

Prateek Mehrotra, MBA, CFA®, CAIA®, Chief Investment Officer of EWM is quoted extensively in this month’s Real Assets Adviser magazine.  In an article titled Endowment Model Takes Its Lumps: It has been a rough year or two, but proponents remind detractors that the model is built for long-term investment strategies, author Steve Bergsman collects viewpoints from several industry professionals analyzing the broad asset allocation of the endowment model and how the various underlying asset classes have contributed or detracted from performance in both recent years and over the long term.  Click on the link to read the entire article.

Oct 18
Love0

Press Release: New Fund Targets Large, Late-Stage Venture-Backed “Unicorns”

By Alternative Investments, Unicorn Technology

APPLETON, Wisc., Oct. 18, 2017 /PRNewswire/ — Endowment Wealth Management, Inc. has announced the launch of its EWM Unicorn Technology Fund. The private fund is seeking to raise up to $25 million to capitalize on what its management team sees as opportunities in the secondary market for private, late-stage venture capital technology companies. Such firms are often referred to as unicorns due to their rarity and size. The Fund manager will seek to build a diversified portfolio of companies that it believes may experience a liquidity event in the next 2-4 years. The Unicorn Technology Fund is currently fully invested across six such companies and the manager intends to add additional investments as the Fund grows.  Read entire release.

EWM E Logo 50x50_opt

Jul 13
Love0

U.S. Private Equity Breakdown-2Q-2017

By Alternative Investments

In the 2Q US PE Breakdown report by Pitchbook & Merrill, it examines each phase of the industry’s cycle and investigates the factors most relevant to investors.

Key takeaways in the report:

  • PE fundraising through June 2017 has mirrored that of the 2007 boom. Capital commitments are on pace to surpass $220 billion.
  • After clocking in at 10.7x in 2016, US M&A EBITDA multiples have regressed slightly in the first half of the year, to 10.5x. Meanwhile, the median debt percentage has increased to 56.3% as high-yield bond spreads reached a three-year low.
  • Deal flow held steady in 2Q 2017, though it is still slightly below last year’s pace. Across the US, 886 deals were completed, totaling $153.6 billion in value.
  • PE exits continued their slowdown with $102.3 billion in exit value over 474 deals. The industry’s selling rate appears to be entering a new normal following the sale of excess company inventory from the last recession.

Download the full report here: PitchBook_2Q_2017_US_PE_Breakdown

Jun 01
Love0

Internet Trends Report 2017

By Alternative Investments, Venture Capital

Here’s a first look at the most highly anticipated slide deck in Silicon Valley. This year’s report includes 355 slides and tons of information, including a new section on healthcare that Meeker didn’t present live.

Here are some takeaways:

  • Global smartphone growth is slowing: Smartphone shipments grew 3 percent year over year last year, versus 10 percent the year before. This is in addition to continued slowing internet growth, which Meeker discussed last year.
  • Voice is beginning to replace typing in online queries. Twenty percent of mobile queries were made via voice in 2016, while accuracy is now about 95 percent.
  • In 10 years, Netflix went from 0 to more than 30 percent of home entertainment revenue in the U.S. This is happening while TV viewership continues to decline.
  • Entrepreneurs are often fans of gaming, Meeker said, quoting Elon Musk, Reid Hoffman and Mark Zuckerberg. Global interactive gaming is becoming mainstream, with 2.6 billion gamers in 2017 versus 100 million in 1995. Global gaming revenue is estimated to be around $100 billion in 2016, and China is now the top market for interactive gaming.
  • China remains a fascinating market, with huge growth in mobile services and payments and services like on-demand bike sharing.
  • While internet growth is slowing globally, that’s not the case in India, the fastest growing large economy. The number of internet users in India grew more than 28 percent in 2016. That’s only 27 percent online penetration, which means there’s lots of room for internet usership to grow. Mobile internet usage is growing as the cost of bandwidth declines.
  • In the U.S. in 2016, 60 percent of the most highly valued tech companies were founded by first- or second-generation Americans and are responsible for 1.5 million employees. Those companies include tech titans Apple, Alphabet, Amazon and Facebook.
  • Healthcare: Wearables are gaining adoption with about 25 percent of Americans owning one, up 12 percent from 2016. Leading tech brands are well-positioned in the digital health market, with 60 percent of consumers willing to share their health data with the likes of Google in 2016.

Download the Internet Trends Report here: Internet+Trends+2017+Report

Source: KPCB, Recode

Jan 19
Love0

2016 Private Equity By The Numbers

By Alternative Investments

 

This morning PitchBook released its report on 2016 private equity activity. It’s not great. Deal volume is down. Deal multiples are up. Equity contributions are up. Exit values are down. Fundraising is down. PitchBook calls this a “return to normalcy” from the record-breaking highs of 2014 and the “turning point” of 2015. The breakdown:
• Deals: Private equity firms invested $649 billion into 3,538 deals last year. That’s down 12% by value and 14% by volume from the year prior.
• Multiples: Median enterprise value hit 10.9x EBITDA for M&A transactions last year, up from 10x in 2015 and 8x in 2010. Why? Too few feasible investment opportunities, PitchBook posits.
• Debt-to-equity: The median debt percentage for private equity and M&A deals fell to 50.5% of the enterprise value, compared to 56.8% in 2015. Buyout shops are having to contribute more equity to deals.
• Exits: Buyout firms pulled $316 billion on 1,097 exits in 2016. That’s down 22% by value and 18% by volume from 2015.
• Fundraising: 11% fewer private equity funds raised money last year than the year prior, and commitments were down 12%.

Source: Pitchbook