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Alternatives & Private Markets
Beyond public markets: private equity, venture, private credit, hedge funds and insurance-linked securities.
The shelf — 16 instruments
Plain English 6
| Annuity | The only product that pays until you die. You are not buying a return — you are buying insurance against outliving your money, and the price is your capital. |
| Hedge Fund | Not an asset but a licence: pooled capital free to go long, short, levered and anywhere — strategies as the product. |
| Open-Ended Property Fund | Daily dealing in buildings that take months to sell — the clearest liquidity mismatch anybody still sells to the public. |
| P2P & Marketplace Loan | Retail investors funding consumer and business loans through a platform. Real credit risk, real yields, and a business model that has repeatedly discovered it was a lender all along. |
| Private Equity Fund | Buy whole companies with borrowed money, improve or re-lever them, sell in five years — finance's ownership business. |
| Venture Capital | Portfolios of long shots: most investments die, one pays for everything — the power law as an asset class. |
Needs one idea 5
| Infrastructure Funds | Owning the pipes, ports, towers and grids — cash flows measured in decades, contracts measured in inflation clauses. |
| Prediction Market | A contract paying $1 if an event happens and nothing otherwise, so its price reads as a probability. A forecasting instrument that is also, unavoidably, a wagering one. |
| Private Credit | The shadow banking success story: funds replaced banks as lenders to the buyout world, and kept growing. |
| Timberland & Farmland | Assets that grow while you wait. The only investment whose inventory increases in volume when you decline to sell it — and the reason institutions treat them as a category of their own. |
| Unit-Linked Policy | A fund portfolio inside an insurance wrapper. The investment risk is entirely yours; what you bought from the insurer is a tax treatment and a set of fees. |
Market knowledge 5
| Catastrophe Bond | Earn double-digit yields for insuring hurricanes — the asset class genuinely uncorrelated with markets. |
| Life Settlement | Buying someone's life insurance policy, paying its premiums, and collecting when they die. Genuinely uncorrelated, and the asset class where the modelling error has a name and a face. |
| Litigation Finance | Funding a lawsuit in exchange for a share of the award. Genuinely uncorrelated with markets, entirely correlated with a judge — and priced like a portfolio of binary options. |
| Royalty Stream | Buying a share of somebody else's revenue, forever or until a patent expires. Top-line exposure with no operating costs — and a valuation that lives or dies on the terminal assumption. |
| Venture Debt | Lending to companies that lose money, secured on the expectation that someone else will fund them again. Cheaper than equity for the founder, and a bet on the next round for the lender. |
What moves prices here
- Manager selection — It dominates everything else here
- The cost and availability of leverage — Most private returns are levered public returns
- Exit conditions — A return is not realised until somebody buys
- The valuation policy — Smoothness is a reporting choice, not a property
- Fee structure — It compounds against the investor exactly as returns compound for them
- Lock-ups and liquidity terms — They decide who bears the cost of an exit
The calendar
| Quarterly | Valuation marks |
| On demand | Capital calls |
| On exit | Distributions |
| Annually | Audited accounts |
| Every few years | Fundraising cycles |
Which risk decides, across the shelf
| Failure mode |
Decides | Share |
| Market | 3 of 16 | 19% |
| Credit | 4 of 16 | 25% |
| Liquidity | 11 of 16 | 69% |
| Funding | 3 of 16 | 19% |
| Operational | 6 of 16 | 38% |
Counted from the same table each product page prints. Not a
rating and not a ranking: there is deliberately no total.