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Risks of Alternative Investments

A trust page covering illiquidity, valuation opacity, fees, leverage, manager risk, and suitability issues.

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The main risk categories

Most alternative investment risk comes from the combination of structure, manager execution, and limited liquidity rather than from one headline number.

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FAQs

What are the main risks?

Key risks include illiquidity, valuation opacity, leverage, manager execution risk, concentration, and tax complexity. The category matters, but structure and manager quality matter just as much.

How should I evaluate fees?

Look for management fees, servicing fees, performance fees, deal-level expenses, and exit-related economics. The right benchmark is net return after all fees, not headline yield alone.