Alternative Investing
What are Alternative Investments?
Alternative investments make up a broad spectrum of non-traditional asset classes and strategies. They can include private equity, venture capital, private credit, hedge funds/liquid alternatives, infrastructure and real estate. Alternative Investing has the potential to offer greater diversification than traditional equity and fixed-income investments.*
What is the Role of Alternative Investments?
Alternative investments can fulfill several roles within investment portfolios, including diversification, capital growth, income generation and protection in market downturns.
A strong alternative investment strategy focuses on:
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Objectives
Risk and return objectives
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Construction
Portfolio construction
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Diligence
Manager sourcing and diligence
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Liquidity
Liquidity needs
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Tolerance
Tolerance for complexity
How Aon Can Help
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Global Capability
At Aon, we have strong global investment manager capability, including a dedicated team focused on finding alternative investment managers and products and implementing strategies.
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Expert Analysis
We provide expert analysis, reporting, and advice on existing and potential alternative investments, discretionary portfolio implementation, manager search and selection, and monitoring.
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Our Services
Our alternative investing services include:
- Fund research and due diligence
- Portfolio construction
- Reporting and investment performance analytics
- Sector and sub-sector research
- Implementation strategies
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Alternative Investing Specialisms
We have alternative investment specialisms in the following areas:
Private Equity: Our service offerings incorporate direct fund investing, co-investments, back-office services, and reporting/ monitoring.
Private Credit: Aon’s cross-asset class private credit team draws on the expertise of our fixed income, private equity and liquid alternatives teams to collectively identify a wide range of investment opportunities across direct lending, alternative credit and real estate-related strategies. This combined team underwrites funds and builds solutions for a wide variety of private credit mandates.
Real Estate: The Townsend Group, an Aon company, has built a global, multi-manager investment platform and advisory capability that offers our clients access to investment opportunities in real estate. We provide exposure to diversifying solutions that cover the full return-risk spectrum, from core and core-plus to value-add and opportunistic. We offer a range of options, from debt to equity, global or regional, and open-ended and closed-end funds, to tailor the exposure to client needs.
Liquid Alternatives: The liquid alternatives team researches a wide range of diversifying strategies with varying levels of liquidity. The team helps clients incorporate hedge funds, alternative credit, insurance-linked securities and other opportunistic strategies into their overall investment portfolios.
Product / Service
Asset Allocation Strategy
* Diversification does not ensure a profit nor does it protect against loss of principal. Diversification among investment options and asset classes may help to reduce overall volatility.
The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass. Information contained herein is for informational purposes only and should not be considered investment advice.
Investment advice and consulting services provided by Aon Investments USA Inc. (“AIUSA”). The information contained herein is given as of the date hereof and does not purport to give information as of any other date. The delivery at any time shall not, under any circumstances, create any implication that there has been a change in the information set forth herein since the date hereof or any obligation to update or provide amendments hereto.
This document is not intended to provide, and shall not be relied upon for, accounting, legal or tax advice or investment recommendations. Any accounting, legal, or taxation position described in this presentation is a general statement and shall only be used as a guide. It does not constitute accounting, legal, and tax advice and is based on AIUSA’s understanding of current laws and interpretation.
This document is intended for general information purposes only and should not be construed as advice or opinions on any specific facts or circumstances. The comments in this summary are based upon AIUSA’s preliminary analysis of publicly available information. The content of this document is made available on an “as is” basis, without warranty of any kind. AIUSA disclaims any legal liability to any person or organization for loss or damage caused by or resulting from any reliance placed on that content. AIUSA. reserves all rights to the content of this document. No part of this document may be reproduced, stored, or transmitted by any means without the express written consent of AIUSA.
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