Process to invest in alternative investments is made easier by new website programming.
The search for and research into alternative investment opportunities has gotten easier with the creation of FNEX.com, a web-based marketplace for alternative investments.
Open to accredited investors, who must pass a registration check before entering the site, FNEX.com offers the chance for entrepreneurs, investment banks and funds to offer unique investment opportunities to investors looking for alternative forms of investment products.
A 2012 Spectrem study of investors with a net worth of $25 million or more revealed that 25 percent of their investable assets were going to alternative investments, and that was the largest percentage of investable assets used for one purpose. Eighteen percent went to professionally managed accounts and 18 percent went to stocks and bonds.
Investable assets among investors with a net worth of $25 million or more were 56 percent of total assets in 2012, according to the Spectrem research.
Asked their likelihood to make future investments in alternative products, 26 percent of the $25 million-plus investor said they would invest in hedge funds, 30 percent said private equity and 2 percent said venture capital. Among Ultra High Net Worth investors (with a net worth of $5 million to $25 million not including primary residence) 18 percent said they were likely to invest in alternatives.
FNEX is not alone in the market to match alternative investment products with investors. Alternative Investment Resources, a company out of Chicago, matches product sponsors to investors, and pre-screens both the products and investors to ensure the financial viability of both.
Most banks also have alternative investment specialists that can lead investors to products and vice-versa.
The new FNEX web system, however, allows investors to investigate products and do their own research to avoid any undesired sales pitch.
"FNEX is a centralized marketplace where investors and offering groups can connect and complete strategic transactions all on a single platform," said Todd Ryden, chief executive of FNEX, in the company’s press release announcing the new web site. "Our unique and streamlined process caters to experienced, savvy investors who are looking for a simple sourcing platform that provides them with a reliable resource for identifying, reviewing and investing in a full range of alternative investments.
"The marketplace for alternative investments and private placements used to be about who you know, and sourcing opportunities were difficult and ad hoc,’’ Ryden said. “We have eliminated that issue and created an environment where accredited investors can focus their time on evaluating a deal, instead of trying to simply find an opportunity. Importantly, FNEX leverages technology to increase efficiency and transparency in a traditionally opaque market. This expands access to capital without creating disintermediation for any traditional market participants."
The site, which is free of charge to investors, includes a mechanism that allows investors to input their investment criteria and can match them to alternative investment opportunities. It then provides the necessary and secure process to complete the transaction.
Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.
In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.
McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.
McDill is the father of four children, and an active fan of soccer, Jimmy Buffett and all things Disney.