- Alternative Investments are an umbrella term used for private market investments
- Private Credit or also known as Private Debt, is a high-risk income strategy
- Infrastructure in the alternative space needs to be seen as a long duration asset. These investments generate cash flow and potentially appreciation of capital upon an exit strategy. Mathis Baumbach: “It’s a buy it and tuck it away for potentially building generational wealth.
- KKR Co-founder Henry Kravis, “Don’t congratulate us when we buy a company, any fool can buy a company. Congratulate us when we sell it and when we’ve done something with it and created real value”
Mathis Baumbach, portfolio manager and investment advisor with Richardson Wealth, joins The Market Online as we look at Alternative Investments, an umbrella term used for private market investments.
Baumbach discusses an alternative to traditional long-only investments such as stocks, bonds or cash and the concept of sacrificing liquidity to get get better risk-adjusted returns across the risk-reward spectrum from credit to equity.
Check out the interview as Baumbach explains alternative investments, private equity, infrastructure investments and shares some words of wisdom from KKR Co-founder Henry Kravis.
:08 – What are Alternative Investments?
1:45 – Alternative Investments vs. Dividend Stocks
2:21 – Private Equity Categories
3:09 – What is Private Credit?
3:55 – What are Infrastructure Investments?
4:25 – Companies in the Alternative Investment space
5:12 – Can you invest publicly in alternative companies?
5:34 – Do you have a preference for US Asset Managers on the Alternative Investment side?
6:30 – Words of Wisdom from Alternative Investment, KKR Co-founder Henry Kravis You can also watch a previous interview with Baumbach: How will the U.S. elections impact U.S. and Canadian markets? You can also reach out directly to him at mathisbaumbach.com.
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