Being baffled by hedge funds and the like is not unusual, but deciding to invest in funds should not be done blindly. That can be difficult with more than 100 unique specialty finance and loan original platforms available. Through those platforms, loans are used for secured real estate lending, small business credit (equipment financing, merchant cash advances, etc.), unsecured loans and credit, retail installment contracts (RIC’s), education, automotive repair, solar equipment, and more. https://yorkvilleadvisors.wordpress.com/2018/01/25/due-diligence-needed-before-investing/

1. Due Diligence Needed
Before Investing
Being baffled by hedge funds and the like is not unusual, but deciding to
invest in funds should not be done blindly. That can be difficult with
more than 100 unique specialty finance and loan original platforms
available. Through those platforms, loans are used for secured real estate
lending, small business credit (equipment financing, merchant cash
advances, etc.), unsecured loans and credit, retail installment contracts
(RIC’s), education, automotive repair, solar equipment, and more.
For those lending funds for such activities, each type of loan can have
very different terms of financing such as how long to pay back, the
interest rate to be charged, other terms or fees. Hedge funds often
provide financing to private partnership or specific types of joint
ventures. They may also lend to institutional investors. There are many
other types of investments and lenders.

2. Investing in hedge funds can offer a way for companies to get larger
interest income returns in shorter periods of time. The usual time for
investing is under two and a half years and can get a return as high as
20% per annum. That’s a good deal – but the question is always … is it
safe?
If your organization wants to start investing some of its liquid assets such
as pension benefits for a better return, there is a lot that needs to be
considered. Things like segment(s), rate thresholds, appropriate entity
structure, duration of assets, lender requirement, tax implications for the
entity, and multi-manager or single focus on allocation size.
Don’t move forward until you know what those things mean and how you
want to use them for your purposes. And at least in the beginning, you
will probably want to look for funds that are managed by people who
have a good history and resume in investing, portfolio management, and
points you can research about how successful they’ve been in previous
and current endeavors.
You should also be aware that different funds have different valuation
practices and methodologies. This allows them to overstate performance
and returns, so take all information with a grain of salt. If the returns are
consistently high, that may mean more is hidden than revealed.
Do not expect to be able to take your investment out ahead of time or
without a fair amount of hassle. The funds usually invest for set times,
and if a fund manager or investment advisor assures you that you can get
out at any time you want without a problem, it may be possible, but get
more information before moving forward. One thing you can count on is
that there will be a lot of change in this area of investing over the coming
years. There will be new products offered, new ideas, and investment
ideas may morph into other things. That’s the nature of this business.
Yorkville Advisors are a global investment partner