Alteris LLC provides Alternative Investment consulting services to those investors considering putting their capital to work in the sometimes ambiguous alternative investment (AI) asset class.
Generally, an Alternative Investment can be categorized as not being contained in one of the three traditional asset types – publicly traded stocks, bonds and cash. Alternative Investments often have the characteristics of a lack of liquidity, complexity and a lower regulatory profile. Investors may find AI vehicles attractive because of their low correlation with standard asset classes and potential returns greater than the market. Alteris recommends to its clients that they allocate only a small portion of their portfolios to AI due to the risk profile of many of these investment vehicles.
Our focus on advising in the Alternative Investments category is usually, but not exclusively, in the following areas:
Private Equity refers to illiquid debt and equity positions in privately held companies. Typically, these are existing businesses with ongoing revenues. Alteris provides analysis of both the equity and debt securities contained in these transactions. Often, these investment opportunities contain so much cash flow uncertainty that the debt behavior in the short term is like that of equity. Besides senior debt, Alteris LLC analyzes mezzanine and distressed debt, which is a subset of this investment category. In addition to providing valuations on the various debt and equity instruments, Alteris LLC provides consulting services on the range of possible outcomes and possible business and investments strategies for these situations.
Venture Capital is usually meant to include equity or debt financing to start-up companies that do not have the track record, size or preference to raise capital from traditional sources (banks, public markets, etc.). These are usually high-risk and illiquid investments in possibly unproven concepts in non-publicly traded companies. The goal is to eventually generate large returns by developing these enterprises into organizations capable of attracting public investment capital or through the sale of the business to other companies.
Alteris LLC and its affiliates have been valuators and analysts for the SBIC Program – the U.S. Small Business Administration’s (SBA) $24-billion family of private equity and venture capital funds. Other clients also include investors/private equity/venture capital firms outside of the SBA program.
We have had the additional privilege of working with private equity firms, venture capital, start-ups and entrepreneurs from around the world. Everywhere from Silicon Valley to Silicon Alley to S. America to Europe to Africa.
Hedge Funds may be the most visible category of AI. A hedge fund is a privately organized investment vehicle that produces investment opportunities that are substantially different from traditional investments. This is possible because of the less regulated nature of hedge funds allowing their use of derivatives, leverage and other strategies. This investment category includes a wide variety of vehicles that are differentiated by the implemented investment strategy. Alteris LLC assists in both the evaluation of hedge funds for potential investors and in developing investment strategies and opportunities for the hedge funds themselves.
Commodities, but with an Alteris LLC specialized concentration in Oil & Gas. Commodities are homogeneous products available in large quantities. Investments in this area is often in the form of futures contracts. Alteris expertise focuses beyond futures contracts to direct investments in natural resource companies, (oil & gas) leases and those businesses that support commodities industries including infrastructure. In that regard, our work on individual businesses may be similar to private equity analysis from the Alteris LLC perspective.
Structured Financial Instruments, such as derivatives including options, warrants, futures, CFDs (Contracts for Difference) and so on. These often involve investment structures containing a high level of complexity. Alteris LLC has partnered with Investments Analytic of Champaign, IL to utilize their proprietary valuation methodology to provide valuations to these difficult to value investment vehicles.
Alteris LLC does have an expertise in the analysis of international Alternative Investment categories, but with most of our experience being in Europe but also Africa and the Middle East.
Alteris LLC clients include hedge funds, private equity and venture capital funds, wealthy individuals and their advisors, family offices, government agencies, sovereign wealth funds, national governments and other institutions.
