Alternative Investments
Alternative investments are opportunities outside the public stock and bond markets. They are often higher risk and higher reward, and therefore, not for everyone, and definitely not meant to replace a well-built core portfolio. Where they can make sense is as a complement—especially for clients who are accredited, have sufficient liquidity, and are looking for diversification beyond public markets.
​
Recently, these alternative investments have been in sectors such as oil, medical, mining, and technology.
A Thoughtful, Selective Approach
We’re highly selective about what we ever bring to clients. Every opportunity is vetted by both our partners and our internal team. We focus on groups with proven track records and people we trust deeply. In some cases, these partners seek us out specifically because of the type of clients we serve and the way we operate.
Access, Not Pressure
One thing that surprises people at first is the limited availability of these opportunities and how quickly the timelines can move. That’s partly because many of our clients have already seen success in this space—so when an opportunity comes along, there’s often strong interest right away. When something does come up, our role is simple: to help you understand it, evaluate whether it fits your situation, and decide—without pressure.
The Redwood Difference
Being a Redwood client means you gain access—access to opportunities, partners, and conversations that most investors never even hear about.
We never push alternatives, and we never assume they’re right for someone. Participation is always optional and considered only after evaluating an individual’s financial circumstances, risk tolerance, and long-term goals. Sometimes the right answer is “no” or “‘not now”’ and that’s perfectly fine.
Frequently Asked Questions
Why not just stick with the stock market?
Public markets play an important role in most portfolios. However, they aren’t the only way to build wealth. Alternative investments can provide diversification and exposure to opportunities that don’t always move in sync with the market. These investments are typically considered as a complement—not a replacement—to traditional portfolios.
Are alternative investments risky?
Yes—often more so than traditional investments. Many involve higher risk, limited liquidity, and longer timelines. That’s why they’re only considered for clients where it makes sense financially and emotionally. Investors should be able to withstand potential losses.
Are these investments right for everyone?
No. Redwood provides information and guidance, but participation is always the client’s decision. Alternatives are typically appropriate only for clients who are accredited, well-diversified, and comfortable with risk. Many clients never participate—and that’s perfectly okay.
What is an accredited investor?
For our purposes, at the most basic level, the SEC defines an “accredited investor” as “an individual with a net worth or joint net worth with a spouse or spousal equivalent of at least $1 million, not including the value of his or her primary residence” or, “an individual with income exceeding $200,000 in each of the two most recent calendar years or joint income with a spouse or spousal equivalent exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year”; however, you can find additional information here: Code of Federal Regulations.
Are these investments guaranteed?
No. There are no guarantees of performance or outcomes.
How do you choose which opportunities to share?
We’re highly selective. Opportunities are vetted by experienced partners and reviewed internally. We prioritize proven track records, trusted relationships, and alignment with our clients’ interests. However, this review does not eliminate risk.
Why do these opportunities sometimes move quickly?
​Unlike public investments, private opportunities often have limited availability. When something opens up, decisions may need to be made sooner—but always thoughtfully and without pressure.
What if I’m not comfortable or want to pass?
That’s always an option. Our role is to inform and advise—not to persuade. Saying “no” is just as valid as saying “yes.”