Positive contribution to the result of capital investments
Generally speaking, alternative assets make a positive contribution to the result of capital investments. Even an allocation of 1% of total investment capital can generate a substantial additional return. A welcome side-effect is that expanding the investment universe reduces the volatility of the overall portfolio. Alternative investments also offer stable returns independently of the economic cycle.
As with other forms of capital investment, higher risks can be mitigated by diversifying across segments and regions.