Alternative asset classes + strategies

Alternative asset classes + strategies

Education > Know your alternatives > Asset classes + strategies


Alternative asset classes + strategies

Explore the broad universe of investment options to help meet your financial goals


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Types of alternatives

Commercial real estate debt

Commercial real estate (CRE) debt refers to the mortgages of CRE properties. CRE debt has historically provided investors with a differentiated source of income and return with lower volatility than many traditional fixed income asset classes.

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Liquid alternatives

Liquid alternatives refer to daily liquid open-end funds, such as mutual funds and exchange-traded funds (ETFs), which invest across a broad range of alternative investment strategies.

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Private equity

Private equity involves investing in private companies that are not publicly traded. Private equity firms use investors’ capital to acquire companies, improve operations, and sell them for a profit. Private equity investments may offer high potential returns, but are often illiquid and require a long-term investment horizon.

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Real assets

Real assets refer to the physical structures, systems and technologies needed to support society. This can include everything from roads and bridges to airports to digital networks. Real asset investments may provide stable, long-term returns and are often seen as a way to benefit society while also generating profit.

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Private credit

Private credit is an asset class that involves lending to privately held companies, without the use of a bank or other traditional lender. Private credit funds lend to these companies in exchange for interest payments and the potential for capital appreciation. Private credit investments may offer higher yields than traditional fixed income investments.

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Bitcoin

Bitcoin is the world’s first technology that provides an open-source monetary system for storing and transmitting an asset of value whose underlying code is entirely open to the public. It is an asset that is traditionally uncorrelated to both stocks and bonds and may provide opportunities for diversification and growth.

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Investor considerations

Investing in alternatives is different than investing in traditional investments such as stocks and bonds. Alternatives tend to be illiquid and highly specialized. In the context of alternative investments, higher returns may be accompanied by increased risk and, like any investment, the possibility of an investment loss. Investments made in alternatives may be less liquid and harder to value than investments made in large, publicly traded corporations. When building a portfolio that includes alternative investments, financial professionals and their investors should first consider an individual’s financial objectives. Investment constraints such as risk tolerance, liquidity needs and investment time horizon should be determined.

A deeper look

Solar panels

Real assets

Learn more about our real asset offerings and how this asset class can provide stable, long-term returns.

Investment Research team

Insights from the Investment Research team

Your guide for making the most of your assets. Stay up to date on market and industry trends with insights from our experts.

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Explore our funds

FS Investments provides access to a broad suite of alternative asset classes and strategies.

Solar panels

Real assets

Learn more about our real asset offerings and how this asset class can provide stable, long-term returns.

Insights from the Investment Research team

Your guide for making the most of your assets. Stay up to date on market and industry trends with insights from our experts.

Explore our funds

FS Investments provides access to a broad suite of alternative asset classes and strategies.

Person in a suit and tie sitting at a table.

The tools you need, within your reach

The largest impediment to more productive client conversations about alternatives is likely a knowledge gap. Investors may be hesitant to expand into alternatives due to their unfamiliarity with, and lack of exposure to alternative investment strategies.

FS Investments provides financial professionals and individual investors with the proper tools to feel comfortable answering and asking questions surrounding alternative investments. With better understanding only comes better conversations and with greater transparency comes expansion, or democratization, of what’s further possible in investing.

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Continuing education

Earn CE credits for CFP, CFA and/or IWI designations with our experts and through our RIA Channel partnership. Plus, participate in the CAIA Fundamentals of Alternative Investments course or the Private Equity Microcredential.

View important footnotes + disclosures

This information is educational in nature and does not constitute a financial promotion, investment advice or an inducement or incitement to participate in any product, offering or investment. FS Investments is not adopting, making a recommendation for or endorsing any investment strategy or particular security. All views, opinions and positions expressed herein are that of the author and do not necessarily reflect the views, opinions or positions of FS Investments. All opinions are subject to change without notice, and you should always obtain current information and perform due diligence before participating in any investment. FS Investments does not provide legal or tax advice and the information herein should not be considered legal or tax advice. Tax laws and regulations are complex and subject to change, which can materially impact any investment result. FS Investments cannot guarantee that the information herein is accurate, complete, or timely. FS Investments makes no warranties with regard to such information or results obtained by its use, and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information.

Any projections, forecasts and estimates contained herein are based upon certain assumptions that the author considers reasonable. Projections are necessarily speculative in nature, and it can be expected that some or all of the assumptions underlying the projections will not materialize or will vary significantly from actual results. The inclusion of projections herein should not be regarded as a representation or guarantee regarding the reliability, accuracy or completeness of the information contained herein, and neither FS Investments nor the author are under any obligation to update or keep current such information.

All investing is subject to risk, including the possible loss of the money you invest.

This information is educational in nature and does not constitute a financial promotion, investment advice or an inducement or incitement to participate in any product, offering or investment. FS Investments is not adopting, making a recommendation for or endorsing any investment strategy or particular security. All views, opinions and positions expressed herein are that of the author and do not necessarily reflect the views, opinions or positions of FS Investments. All opinions are subject to change without notice, and you should always obtain current information and perform due diligence before participating in any investment. FS Investments does not provide legal or tax advice and the information herein should not be considered legal or tax advice. Tax laws and regulations are complex and subject to change, which can materially impact any investment result. FS Investments cannot guarantee that the information herein is accurate, complete, or timely. FS Investments makes no warranties with regard to such information or results obtained by its use, and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information.

Any projections, forecasts and estimates contained herein are based upon certain assumptions that the author considers reasonable. Projections are necessarily speculative in nature, and it can be expected that some or all of the assumptions underlying the projections will not materialize or will vary significantly from actual results. The inclusion of projections herein should not be regarded as a representation or guarantee regarding the reliability, accuracy or completeness of the information contained herein, and neither FS Investments nor the author are under any obligation to update or keep current such information.

All investing is subject to risk, including the possible loss of the money you invest.

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