Real estate
Canadian Private Alternative Investments
Private alternative investments can help you secure your financial future
It’s time to think beyond the stock market. Canadian investors are choosing private alternative investments to help diversify their portfolios, protect from volatility, and boost returns.
With Skyline, you can participate in Canada’s growing real estate and renewable infrastructure sectors, with private alternative investments that have provided historically stable returns since inception. Read on to find out more about how private alternatives like Skyline’s funds can provide unique investor benefits.
What are alternative investments?
Alternative investments can provide a powerful way to help you reach your financial goals faster. Alternatives do not fall into conventional investment categories, like stocks, bonds, or cash.
Some common types of alternative investments include:
You can choose to invest directly in a real estate property by buying and managing it yourself, or you may prefer to invest in a real estate investment trust (REIT), which pools investor funds to acquire and professionally manage real estate assets.
Private equity and venture capital
These involve investing in privately held companies or startups that are not publicly listed or traded on stock exchanges.
Hedge funds
Hedge funds pool money from multiple investors and use various strategies to invest in stocks or other assets.
Commodities
Commodities are investments in physical raw goods like oil, natural gas, precious metals, or agricultural products.
Why real assets matter
Many alternative investments fall into the category of real assets. These include real estate, land, renewable infrastructure, and natural resources. Real assets can be appealing because they have physical substance, can generate steady income, and tend to perform well during volatile market conditions.
What’s the difference between private and public alternative investments?
When an alternative investment is not traded on the public markets, it is classified as a private investment. There are many examples of alternative investments that are privately held instead of traded on daily exchanges—for example, private real estate investment trusts (REITs).
Private alternative investments aim to outperform traditional investments in terms of risk-adjusted returns. Since they are not publicly traded, private alternative investments tend to have a low correlation to stock markets, meaning they are less influenced by short-term market sentiments, resulting in lower volatility.
What are the benefits of private alternative investments?
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Portfolio diversification
Private investments often focus on long-term value creation, offering the potential for substantial capital appreciation over time. -
Reduced volatility
Private investments often have low correlation to the public market, resulting in potentially less volatility. -
Capital growth potential
Private alternative investments may also provide both capital growth potential and possible tax benefits. -
Tax benefits
Many private alternative investments offer potential tax efficiency. -
Registered account eligibility
You may be able to invest in private alternative investments through registered accounts, like RRSPs and TFSAs.
