Vivaris Capital Reports on 2022 Investor Opportunities in Alternative Assets

SAN JUAN, Puerto Rico, Oct. 6, 2022 /PRNewswire/ -- In today's dynamic market environment, the time is right for savvy investors to turn to investment opportunities in alternative assets. Hedge funds, private equity, real estate, infrastructure, and natural resources are among the asset classes that allow investors unprecedented access to new fund structures with various risk and reward characteristics.

Historically, alternative investing was popular only with institutional investors such as pension funds, endowments, and foundations, but more recently several new alternative funds and direct investment opportunities have launched for individual investors and family offices.

It's clear that the industry is growing at a record pace. Preqin reports that total assets under management in the alternatives industry should reach $23.21 trillion by 2026, up from $13.32 trillion in 2021. This bullish sentiment is echoed by Goldman Sachs which notes that, "The market for assets that aren't publicly traded has roughly doubled in the past five years to about $10 trillion, according to data from consulting firm McKinsey & Co. and data provider Preqin.

Vivaris Capital's VICAN Fund is one example of an alternative assets investment strategy that offers investors' access to institutional-quality private equity investments with high-growth, high-return potential while securing their principal and providing liquidity. It aims to be the disruptor the industry needs during this period of recession, inflation, and revaluation. 

The top ten benefits of increasing portfolio allocations to alternative investments, as outlined by Vivaris Capital CEO J. Christopher Mizer in a recent Forbes Council article are:

1.  Diversification – Diversification broadens portfolio exposure to maximize return opportunities and avoid over-allocation to a particular asset class. As seen in the great recession, over allocation to financial stocks and real estate dramatically impacted investment portfolios.  Wider diversification could have limited losses from either of those asset classes.

2.  Better valuations – Alternative assets provide the opportunity to invest in companies based on private company valuations which are typically much lower than comparable public companies due to the inherent lack of liquidity. 

3.  Higher growth - In terms of revenues, earnings, and value creation, investing in alternative assets that are experiencing rapid grow is more compelling than investing in more mature, publicly traded companies with lower growth prospects.

4.  Lower operating and infrastructure costs – Similarly, alternative investments typically have a much lower cost structure than publicly traded companies.

5.  High risk-adjusted returns – Alternative assets are uniquely positioned to earn high-risk adjusted returns because of the ability to hedge away downside risk while maintaining the upside potential.

6.  High absolute returns - Alternative assets may also earn higher nominal returns than publicly traded stocks and bonds as the multiplier effects of lower valuations, higher growth, and strategic liquidity events compound the effects of capital appreciation.

7.  Low correlation to the public stock and bond markets – Alternatives are typically less correlated with the vicissitudes of the public capital markets with focus on quarterly performance and the impact of macroeconomic factors. 

8.  Inflation hedge – Public equities and debentures tend to decline in value during periods of inflation because the associated future cash flows are discounted at a higher rate and therefore become less valuable. Alternative assets may be better able to hedge against rising prices because their value is created from financial metrics and non-financial, strategic milestones.

9.  Source of passive income – Certain alternative assets, such as rental real estate, can generate a reliable income stream over time with a higher yield than dividends or interest payments.

10.  Reduced volatility - Alternative assets can reduce portfolio volatility through various exposures that each asset type has to market conditions. The greater the exposure, the more protections a portfolio has when compared to limited holdings of traditional investments.

There are many benefits of portfolio exposure to alternative asset opportunities, and corresponding returns and allocations are reflective of recent changes in the markets and investor preferences. Allocations to alternatives are forecasted to continue growing fast to offer attractive returns over other options.

For further information, visit https://www.vivariscapital.com/, call +1.619.727.8497 or email [email protected]. 

Media Contact:
Charlotte Luer
+1.239.404.6785
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THIS DOCUMENT IS PROVIDED TO INVESTORS AND INVESTMENT ADVISORS FOR THEIR CONSIDERATION AND IS INTENDED FOR INFORMATIONAL PURPOSES ONLY—IT IS NOT AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITY OR ANY INTEREST IN ANY PRIVATE FUND SPONSORED OR MANAGED BY VIVARIS CAPITAL, LLC ("VIVARIS"), SUCH OFFERS MAY ONLY BE MADE VIA THE DELIVERY OF THE CONFIDENTIAL PRIVATE PLACEMENT MEMORANDUM OF THE VICAN FUND LLC (THE "FUND") AND SUBSCRIPTION AGREEMENT (COLLECTIVELY, "OFFERING MATERIALS") TO A QUALIFIED RECIPIENT. PRIOR TO INVESTING IN THE FUND, QUALIFIED AND SUITABLE INTERESTED PARTIES MUST CAREFULLY REVIEW THE OFFERING MATERIALS FOR INFORMATION ABOUT THE INVESTMENT, INCLUDING RISKS, FEES, CONFLICTS OF INTEREST AND EXPENSES. IN ALL CASES, INTERESTED PARTIES SHOULD CONDUCT THEIR OWN INVESTIGATION AND ANALYSIS OF THE FUND, THE DATA IN THIS DOCUMENT AND SUCH OTHER DATA AS THEY MAY CONSIDER RELEVANT TO AN INVESTMENT DECISION.

WHILE MANY OF THE THOUGHTS EXPRESSED IN THIS PRESENTATION ARE STATED IN A FACTUAL MANNER, THE DISCUSSION REFLECTS ONLY VIVARIS' BELIEFS ABOUT THE MARKETS IN WHICH THE FUND WILL INVEST WHEN FOLLOWING ITS INVESTMENT STRATEGIES AS ARE DESCRIBED IN THE OFFERING MATERIALS. VIVARIS' VIEWS EXPRESSED HEREIN ARE SUBJECT TO CHANGE. ANY DESCRIPTIONS OF THE FUND'S INVESTMENT STRATEGY HEREIN ARE IN SUMMARY FORM, ARE INCOMPLETE AND DO NOT INCLUDE ALL OF THE INFORMATION NEEDED TO EVALUATE ANY POTENTIAL INVESTMENT. INVESTMENTS IN ANY FUND MANAGED BY VIVARIS INVOLVE SUBSTANTIAL RISKS, SOME OF WHICH ARE DISCLOSED IN THE OFFERING MATERIALS. ONLY BY CAREFULLY REVIEWING AND CONSIDERING THOSE FACTORS AND THE REST OF SUCH FUND'S OFFERING MATERIALS (IN ADDITION TO OTHER INDEPENDENT INVESTIGATIONS) CAN AN INVESTOR DETERMINE WHETHER SUCH RISKS, AS WELL AS THE EXPERIENCE AND COMPENSATION, AND CONFLICTS OF INTEREST OF VIVARIS AND OTHER INFORMATION CONTAINED THEREIN ARE ACCEPTABLE TO THE INVESTOR.

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS AND THERE IS NO ASSURANCE THAT ANY INVESTOR'S INVESTMENT OBJECTIVES WILL BE MET OR THAT THE INVESTOR WILL NOT LOSE MONEY BY INVESTING IN THE FUND. THE ACCURACY AND COMPLETENESS OF THE INFORMATION IN THIS DOCUMENT IS NOT GUARANTEED AND HAS NOT BEEN AUDITED BY ANY THIRD PARTY, AND THE FUND IS IN PARTICULAR RELYING ON THE PERFORMANCE INFORMATION PROVIDED TO IT BY THE FUND'S UNDERLYING INVESTMENTS. INVESTMENTS MAY FLUCTUATE AND THE PRICE OR VALUE OF ANY SECURITIES OR INVESTMENTS MAY RISE OR FALL.

NO DUTY TO UPDATE. NEITHER VIVARIS, THE FUND, NOR ANY OF THEIR AFFILIATES ASSUME ANY DUTY TO UPDATE ANY INFORMATION IN THIS DOCUMENT. FOR EXAMPLE, THE INVESTMENT OBJECTIVES, METHODS AND LIMITATIONS SUMMARIZED HEREIN REPRESENT CURRENT INTENTIONS FOR THE FUND. NEVERTHELESS, DEPENDING ON CONDITIONS AND TRENDS IN SECURITIES MARKETS AND THE ECONOMY GENERALLY, THE FUND MAY, SUBJECT TO ANY LIMITATIONS DESCRIBED IN THE OFFERING MATERIALS, PURSUE ANY OBJECTIVES, EMPLOY ANY TECHNIQUES OR PURCHASE ANY TYPE OF SECURITY THAT IT CONSIDERS APPROPRIATE AND IN THE BEST INTERESTS OF THE FUND.

FORWARD LOOKING STATEMENTS. THIS DOCUMENT MAY CONTAIN FORWARD-LOOKING STATEMENTS BASED ON VIVARIS' EXPECTATIONS AND PROJECTIONS ABOUT THE METHODS BY WHICH VIVARIS EXPECTS TO INVEST THE FUND'S CAPITAL. THOSE STATEMENTS ARE SOMETIMES INDICATED BY WORDS SUCH AS "EXPECTS," "BELIEVES," "WILL" AND SIMILAR EXPRESSIONS. IN ADDITION, ANY STATEMENTS THAT REFER TO EXPECTATIONS, PROJECTIONS OR CHARACTERIZATIONS OF FUTURE EVENTS OR CIRCUMSTANCES, INCLUDING ANY UNDERLYING ASSUMPTIONS, ARE FORWARD-LOOKING STATEMENTS. SUCH STATEMENTS ARE NOT GUARANTEES OF FUTURE PERFORMANCE AND ARE SUBJECT TO CERTAIN RISKS, UNCERTAINTIES AND ASSUMPTIONS THAT ARE DIFFICULT TO PREDICT. THEREFORE, ACTUAL RETURNS COULD DIFFER MATERIALLY AND ADVERSELY FROM THOSE EXPRESSED OR IMPLIED IN ANY FORWARD-LOOKING STATEMENTS AS A RESULT OF VARIOUS FACTORS.

NO REPRESENTATION AS TO ACCURACY OF INFORMATION. CERTAIN INFORMATION CONTAINED HEREIN HAS BEEN PROVIDED BY, OR OBTAINED FROM, THIRD PARTY SOURCES. WHILE VIVARIS BELIEVES THAT SUCH SOURCES ARE RELIABLE, NEITHER VIVARIS NOR THE FUND CAN GUARANTEE THE ACCURACY OF ANY SUCH INFORMATION AND DOES NOT REPRESENT THAT SUCH INFORMATION IS ACCURATE OR COMPLETE.

NO ADVICE. THIS PRESENTATION SHOULD NOT BE CONSTRUED AS INVESTMENT OR OTHER ADVICE—IT IS PRESENTED FOR INFORMATION PURPOSES ONLY AND IS NOT INTENDED TO BE EITHER A SPECIFIC OFFER BY ANY PERSON TO PROVIDE ANY FINANCIAL SERVICE OR PRODUCT. FUND INVESTORS WILL ONLY BE MEMBERS OF THE FUND, AND WILL HAVE NO EQUITY IN, OR ANY STANDING OR OTHER RECOURSE AGAINST, VIVARIS.

SOURCE Vivaris Capital, LLC