Let’s Talk Private Investments: Part One Explaining our Evolution

By CJ Follini | NOYACK

Let’s Talk Private Investments: Part One Explaining our Evolution

Part One:
Explaining our Evolution

Following on the success of Let’s Talk Logistics Real Estate, we are creating a spin-off series called Let’s Talk Private Investments. The series will explore various benefits of private investments rather than the merits of a specific investment.

The evolution of this series coincides with our evolution as an organization. Our historical focus has been on making commercial real estate more accessible, and we are expanding to a unified platform to learn, interact, and invest in private offerings. We want to be as inclusive and transparent as possible about this transition, so we are kicking off the series by explaining why we are evolving, how we are evolving, and what you can do to evolve with us.

Why we are evolving

The primary reason that we are evolving is because the investor portfolio needs to evolve. For years, many investors have relied on a portfolio with a 60% allocation to stocks and a 40% allocation to bonds. This portfolio is often called the ‘60/40’, and it’s had a reputation for offering investors a balance between stability and long-term returns. However, recent economic environments have resulted in subpar performance for the portfolio, which is partially why we believe it is time to reimagine the portfolio to include more than stocks and bonds.

Specifically, private investments can enhance both returns and stability compared to a 60/40 portfolio, and various investors are more than ready for them. Research indicates that younger generations (age 21 – 42) want over triple the allocation to alternative investments and half as much to stocks compared with older investors. Institutional investors also want private investments as research indicates large endowments are allocating less toward fixed income and public equities, and some top endowments are even earning significant returns because of private investments.

How we are evolving

We are growing our offerings beyond commercial real estate to support this trend. (More details on that to come.) With more investment opportunities, investors will have additional tools to fine-tune their portfolios depending on their return and/or stability needs. 

However, adding more offerings is only part of our solution. Private investments have historically been an exclusive space, which we aim to combat with a Wealthtech platform. This platform can distribute power more evenly to investors by providing them a more accessible place to research and purchase private investments. Further, we intend for our Wealthtech platform to allow investors the ability to research and purchase many kinds of private investments, including sub-categories offered by other organizations.

We’re also increasing financial literacy of private investments. The ultrawealthy 1% have been the primary group with access to the world of private investments, so we need to do more than broaden our investment offerings and create a platform. We must also create financial education to empower investors so they understand exactly how private investments can help them to achieve financial freedom.

What you can do to evolve with us

If you have felt that private investments (or investments in general) are unclear, fragmented, and inaccessible –  join us as we forge a new path within the space. If you want to join us, education is the most important first step. Private investments are particularly complex spaces where many investors (particularly newcomers) have minimal knowledge. For the next three months, we will be publishing content that explains key concepts and debunks myths about private investments, and discusses opportunities within the space. For our next piece, we will start with the basics: Why consider private investments. 

Have a topic you want us to cover?

Future articles in this series will dive into the various aspects of private investments. Email us at invest@noyackcapital.com if you have any specific questions related to private investments.

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