👉Thread: Here’s a 🔥 investing insight that nobody talks about.

Big $ investors such as academic endowments typically allocate ~35% of their assets to “alternative” investments such as PE, RE, and VC.

How does this compare to individual investors?
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2/ Individual investors typically allocate *only ~6%* to alternative investments. That should make you go 🤔.

The reason for the disparity is simple: Most individuals simply don’t have access to private deals, nor do they have the expertise to evaluate them. It's the wild west.
3/ New marketplaces like @AngelList, @CrowdSteet and many others are bringing transparency and access to these investments.

➡️ Nobody is talking about the *massive wave of reallocation* that will happen over the next decade as the private investment market is democratized.
4/ Why should you care? Because it opens up a new world of juicy investment options. For example, one RE firm I invest with has averaged a 36% IRR on its last 20 deals spanning a decade. This is for asset backed, properly leveraged investments, not a bunch of speculative deals.
(4a/ I recently did a reallocation of my money, inspired by RE twitter and specifically people like @sweatystartup and @fortworthchris.)
5/ Family offices have invested in these deals for decades.

But there's a catch: New marketplaces solve the access problem, there’s still a *curation* problem. Remember, it’s the wild west and most individuals don’t have the “particular set of skills” required to evaluate deals.
6/ To put this in context, I look at 30+ private investment opportunities a month across real estate, startups, and PE. It would be overwhelming if I didn’t enjoy pouring through pitch decks and PPMs so much.
7/ How does this curation problem get solved? One way is via syndicates led by trusted experts who curate private deals for their followers. Syndicates are common in angel investing, but don't really exist in other sectors.
8/ Syndication is an underappreciated investment mechanism. It allows individuals to operate at the meta layer with *better* deal flow than many pros, who are often limited to deals they source directly. Syndicate members pay a fee for sourcing and curation of deals...
9/ ...and in return they get a manageable number of pre-vetted deals to consider. Equally important, syndication platforms make paperwork and tracking/reporting easy.
10/ Syndication works a lot like social media. There's probably an opportunity to create a "meta-syndication" platform that makes it easy to follow top curators and manage deal flow. Similar to what AngelList does today but for all types of alternative investments.
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