Alternative investment solutions might be just what you need if you’re searching for new ways to diversify and protect your wealth. With the global alternatives market projected to reach $24.5 trillion by 2028 (InvestmentNews), these lesser-known opportunities continue to gain traction among high-net-worth investors who crave robust strategies outside the usual stocks and bonds. If you’re new to these solutions, you might be asking yourself whether there’s a minimum net worth requirement, how quickly you can sell, whether they’re riskier than traditional assets, what returns you might expect, or how to pick a standout manager.

Below is a curated look at six potential avenues that offer distinct ways to grow and preserve your portfolio. Each option has its own unique flair, so feel free to explore the ones that align with your financial priorities.

Consider Private Equity

Picture buying a stake in a promising company that’s not publicly listed. That’s private equity in a nutshell. It typically involves taking a more active role in shaping a company’s future, which can lead to impressive returns over time. However, you’ll see less liquidity here compared to, say, a stock portfolio, because your capital is locked in until the fund decides to sell.

Possible Gains: Enhanced returns when companies thrive
Key Drawback: Illiquidity, which can tie up your money for years
Ideal For: Investors comfortable with longer holding periods

For insights on creating a well-rounded approach, take a peek at these investment strategies. And if you want to explore other avenues around equity, have a look at equity investment strategies.

Explore Private Credit

If you’re seeking a steady income stream, private credit might catch your eye. In this strategy, you essentially lend money to businesses that don’t borrow through traditional channels. According to recent data, global private credit fundraising jumped to $59 billion in the first quarter of 2025, up from $37 billion in late 2024 (J.P. Morgan). While returns typically outpace those of a typical bank account, you need to stay mindful of interest rate fluctuations.

Possible Gains: Consistent income
Key Drawback: Rising interest rates can reduce the value of your holdings
Ideal For: Investors wanting a predictable cash flow

Try Real Assets

Real assets include tangible holdings like infrastructure projects, commodities, or real estate. They can act as a solid hedge against market volatility. Plus, many real-asset investments may stand up well in various economic scenarios because they’re tied to physical properties or essential services. Commercial real estate, in particular, might see steady growth, although short-term market dips can occur due to policy uncertainties (J.P. Morgan).

Possible Gains: Portfolio diversification and inflation hedge
Key Drawback: Illiquidity if you need to sell quickly
Ideal For: Investors seeking tangible assets with long-term potential

If real estate piques your interest, take a look at how can i invest in real estate for more details.

Look At Hedge Funds

Hedge funds aim to capitalize on a broad range of market movements. While they can sometimes underperform (with recent returns hovering around 0.17% year-to-date after fees), certain strategies thrive in volatile markets (J.P. Morgan). Risk levels vary widely, so it pays to do your homework on the fund manager’s track record and strategies.

Possible Gains: Flexibility in changing market conditions
Key Drawback: Complex fee structures and variance in performance
Ideal For: Investors looking for broader diversification with professional oversight

Invest In Managed Futures

Managed futures often involve trend-following strategies across asset classes like commodities and currencies. Because they can move independently of traditional markets, they may help offset volatility on your overall balance sheet (PIMCO). Be aware, though, that these investments can be volatile on their own, so keeping them as a slice of your portfolio might be wise.

Possible Gains: Portfolio “shock absorber” during wild market swings
Key Drawback: Higher volatility when viewed alone
Ideal For: Investors wanting an extra layer of diversification

Check Venture Capital

Venture capital (VC) invests in early-stage companies with high growth potential. You might enjoy a significant upside if the startup takes off, but there’s also a real chance of losing your entire stake. Returns tend to be more modest when market sentiment is cool, but the allure of finding the next unicorn continues to attract investors.

Possible Gains: Huge potential rewards in high-growth companies
Key Drawback: Greater risk, plus a long wait for returns
Ideal For: Investors ready to bet on innovation and emerging industries

Comparison Table

Below is a quick snapshot of how these six options stack up:

Solution	Potential Return	Liquidity	Suited For
Private Equity	High	Low (long lock)	Investors seeking higher returns over time
Private Credit	Moderate	Low-Med	Investors wanting stable income
Real Assets	Moderate	Low	Tangible asset enthusiasts (real estate etc.)
Hedge Funds	Moderate	Medium	Diversification seekers with flexible outlook
Managed Futures	Variable	Medium	Those wanting a volatility buffer
Venture Capital	High	Low (long lock)	Investors willing to take on higher risk

Balancing Risk and Reward With Alternatives

Whether you’re drawn to the hands-on nature of private equity or the steady returns of private credit, these options can help diversify your portfolio and preserve your wealth in uncertain markets. Keep in mind that many of these approaches have stricter entry requirements and complex fee structures, so always do your due diligence. If you’re still exploring your options, start by looking at what are alternative assets to see if they fit into your long-term plan.

Thinking about how these unconventional strategies might align with your broader goals? Feel free to speak with a financial professional who understands not just your net worth, but your aspirations too. With a bit of careful planning, you’ll be on your way to pursuing sustainable growth and empowering your legacy for years to come.