Alternative Investments
SkyOak Capital provides investment advice on alternative investments for clients seeking opportunities beyond traditional stocks and bonds. These may include private equity, venture capital, private real estate, private credit, hedge funds, managed futures and other privately offered investments.
Alternative investments can provide additional opportunities for income, growth and diversification, but they also involve risks that differ from traditional investments. We evaluate these opportunities within the context of each client’s overall portfolio, financial goals, liquidity needs and tolerance for risk.
Our Approach to Alternative Investments
SkyOak’s approach begins with understanding how an alternative investment fits within a client’s broader financial strategy.
Our advisors evaluate investment opportunities, conduct due diligence, consider the investment’s structure and risks, and determine whether an allocation is appropriate for the client.
Depending on the investment, our review may include the sponsor or manager, investment strategy, historical performance, underlying assets, fees, liquidity restrictions and other relevant considerations.
We also work with clients who already own private investments and need assistance evaluating those holdings as part of their overall financial plan.
Types of Alternative Investments
SkyOak provides advice on a variety of alternative investments, including:
- Private Equity & Venture Capital — Investments in privately held companies and funds focused on business growth and development.
- Private Real Estate & Land — Direct real estate investments, private real estate funds and other property-related opportunities.
- Private Credit & Lending — Private loans, debt funds and other nontraditional lending investments.
- Hedge Funds & Managed Futures — Strategies that may use alternative investment techniques to pursue returns or manage portfolio risk.
- Private Funds & Limited Partnerships — Investments managed by third-party sponsors across a range of asset classes and strategies.
- Direct Private Investments — Private company interests and other investments held directly by clients.
The availability and suitability of these investments depend on each client’s circumstances, investment objectives and applicable investor eligibility requirements.
Who May Benefit From Alternative Investments?
Alternative investments are generally more appropriate for investors who have sufficient financial resources, understand the associated risks and can commit capital for extended periods.
Many privately offered investments are restricted to accredited investors or qualified purchasers, depending on the investment.
SkyOak evaluates alternative investments based on the client’s overall financial position, liquidity needs, investment experience, risk tolerance and long-term objectives.
Understanding the Risks
Alternative investments can involve significant risks and are not appropriate for every investor.
Some important considerations include:
- Limited Liquidity: Investments may require capital to remain committed for several years, with limited opportunities for early withdrawal.
- Potential Loss of Capital: Investors may lose some or all of their investment.
- Valuation Uncertainty: Private investments may not have readily available market prices, and reported valuations may not reflect their actual sale value.
- Additional Fees: Private funds may charge management fees, performance fees and other expenses in addition to SkyOak’s advisory fee.
- Limited Transparency: Some private investments provide less frequent financial reporting and information than publicly traded investments.
SkyOak reviews these considerations with clients when evaluating whether an alternative investment is appropriate.
Alternative Investments Within Self-Directed IRAs
Certain alternative investments may be held within a Self-Directed IRA through a specialty custodian.
SkyOak provides Self-Directed IRA Services & Administration to assist clients with account setup, investment documentation, transactions and ongoing custodian coordination.
Depending on the advisory relationship, the alternative investment may be selected by the account holder or recommended by SkyOak as part of the client’s broader investment strategy.
Learn More About Self-Directed IRA Services & Administration →
Fees
Fees for alternative investment advisory services depend on the nature of the investment and the scope of the advisory relationship. Investments managed or advised on as part of an investment management relationship may be subject to SkyOak’s investment management fee schedule.
Private funds and other alternative investments may have additional expenses charged by their sponsors or managers.
Complete fee information is available on our fees page and in SkyOak Capital’s Form ADV.
Your Advisors
Jennifer Davis, CFP®, Founder, CEO & Private Wealth Advisor, has more than 35 years of wealth management experience, including advising clients with private investments, concentrated holdings and complex financial circumstances.
Damien Rennie, Senior Wealth Advisor & Director of Employer Retirement Plans and Self-Directed IRA Services, also works with clients on alternative investments and the specialized requirements of holding private assets within retirement accounts.
FAQs
Frequently Asked Questions
What types of alternative investments does SkyOak Capital advise on?
SkyOak provides advice on private equity, venture capital, private real estate, private credit, hedge funds, managed futures, private funds, limited partnerships and certain direct private investments.
Do I need to be an accredited investor?
Many privately offered investments require accredited investor or qualified purchaser status. Eligibility requirements vary depending on the investment, and SkyOak evaluates whether an opportunity is appropriate for each client.
Can alternative investments be held in an IRA?
Yes. Certain alternative investments can be held in Self-Directed IRAs through specialty custodians. SkyOak can assist with the administrative process and, depending on the advisory relationship, may also provide investment advice.
Are alternative investments liquid?
Many alternative investments have limited liquidity and may require investors to commit capital for several years. The restrictions vary by investment.
What fees apply to alternative investments?
SkyOak’s advisory fees depend on the investment and services provided. Private funds may also charge their own management, performance and administrative fees.
Are alternative investments appropriate for every investor?
No. Alternative investments may involve significant risk, limited liquidity and complex structures. SkyOak considers each client’s financial circumstances, investment objectives and ability to bear potential losses before making a recommendation.