Wealthy Investors Keen On Alternative Assets

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    The wealthier the investor, the larger their investment in alternative assets, says a report by Spectrem Group. ‘Use of Hedge Funds and Private Equity in the Portfolios of the Wealthy’ concentrates on investors with a net worth over $5 million and found that hedge funds receive more money from alternative investors ‒ particularly those with a net worth of $25 million or more ‒ than any other class of alternatives. The average investment for the $25 million investor ranges from $3.5 million for private placements to $12.6 million for hedge funds. While 42 per cent of investors with a net worth over $25 million own hedge funds, 69 per cent of investors with a net worth of $125 million or more are invested in hedge funds. The report also found that ownership of alternatives increases with an increase in wealth and decreases with increasing age. George H. Walper, Jr., president of Spectrem Group, says “Investors who find alternatives attractive are looking for a higher rate of return and a diversified portfolio of investments.”