What are Alternative Investments?

Alternative investments are non-traditional investment options that differ from traditional asset classes like stocks, bonds, and cash. Alternative investments are often accessed by high-net-worth individuals or institutional investors, but not anymore. Now a retail Investor can also get exposure of these assets by investing with lower ticket size to earn Double digit risk adjusted returns. Stay tuned for more.

Why to choose Alternative Investments?

Diversification is one of the fundamental principle of investments, and Alternative Investments allow you to do that. This means spreading your money across different types of investments, which can help to reduce the risk of putting all your eggs in one basket. Here you can have access to products giving you a double-digit risk-adjusted returns from 10% to 18% per annum along with predictable cash flows.

Which are the Options to Invest in Alternative Investments?

At UpperCrust we make sure that every retail investor out there has an equal opportunity to invest in such kind of investment products. At UpperCrust you can have access to the multiple products for Alternative Investments Universe as mentioned below:

P2P Lending (Peer to Peer Lending)

P2P lending, or peer-to-peer lending, is an alternative investment product where individuals lend money directly to borrowers through online platforms. It cuts out traditional financial institutions like banks, allowing borrowers to access funds and lenders to earn interest. P2P Lending platforms are working on various models like Direct lending, Subvention, BNPL, No cost EMIs, DSAs model, etc. for quality borrowers sourcing.

Why to invest in P2P Lending platforms

• To get up to 9-12% annual returns without any equity market risk and volatility.
• RBI Regulated platform same as Banks and NBFCs.
• Working on structure mix of both of Mutual Funds and FDs.
• Fixed tenure investments from 6 month to 36 months.
• For liquid funds and short term parking money.

Our Growth Partners for P2P Lending Investments:

Digital Asset Leasing and Financing through SDI

• Financing the movable asset to generate a regular income from it by leasing the assets. It is a contractual agreement between the lessee (user) & lessor (owner) for regular payments to use an asset for a specified period.
• Securitized Debt Instruments (SDIs) are financial products that pool together a group of individual debts, such as Leases in our case and transform them into tradable securities.
• The underlying debt payments in the form of principal and interest, serve as the source of cash flow for the investors.

Why to invest in Asset lease financing through Grip SDI

• Less volatile than the stock market.
• Strong collateral insures more safety.
• Co-Invest with others help mitigating risk.
• To generate fixed monthly cashflows.

Our Growth Partner for Asset Leasing and Financing:

Invoice discounting

Invoice discounting is a form of financing chosen by businesses to tap into their unpaid invoices so that they can meet their working capital requirements. Essentially it is a post-sales funding. Businesses avail financing towards unpaid invoices for the goods already delivered at a pre-determined cost.

Why do companies use this method of financing?

When businesses provide credit periods of few weeks to few months to clients, the company could look to raise funds through discounting invoices during this period to get cash flows that could be deployed back for more critical business needs. The funds raised are essentially a part of the working capital

Why to invest in Invoice Discounting

• Short tenure deals of 30 to 90 days with good yields up to 13% IRR returns.
• To boost and diversify your Investment Portfolio.
• Short tenure investment needs.

Our Growth Partners for Invoice Discounting:

Revenue based Movie/ OTT Financing

• Movie/OTT (Over-The-Top) financing refers to the process of investing in the production or distribution of movies or content for online streaming platforms against the rights and pre-signed agreements.
• Investors in movie/OTT financing can earn returns through a revenue participation. This means that they receive a share of the revenue generated by the movie or TV show, which could include box office earnings, streaming royalties and licensing fees.

Why do companies use this method of financing?

When businesses provide credit periods of few weeks to few months to clients, the company could look to raise funds through discounting invoices during this period to get cash flows that could be deployed back for more critical business needs. The funds raised are essentially a part of the working capital

Why to invest in Movie/OTT Financing

• Higher returns than other fixed income options (IRR up to 16-18%*).
• Higher security as entities are already producing cash flow.
• Priority Investment repayment, afterwards other expenses will be paid.
• Reach maturity in short cycles; usually 1 to 18 months.

Our Growth Partners for Movie/OTT Financing:

Alternative Investment Funds (AIFs)

Alternative Investment Funds (AIFs) are regulated investment vehicles that operate under the guidelines of the Securities and Exchange Board of India (SEBI). AIFs provide opportunities for Indian investors to diversify their portfolios and access non-traditional investment avenues.

There are 3 Categories of AIFs in India

• Category I AIFs: These funds invest in startups, early-stage ventures, social ventures, small and medium-sized enterprises (SMEs), infrastructure, or other economically or socially beneficial sectors as defined by SEBI.
• Category II AIFs: These funds include private equity funds, debt funds, or funds that do not fall under Category I or Category III. Category II AIFs are subject to specific investment restrictions and may have strategies focused on real estate, distressed assets, or other alternative investments.
• Category III AIFs: These funds employ complex trading strategies and may use derivatives for hedging or speculative purposes. Category III AIFs are typically hedge funds or funds that carry out high-risk trading activities.

Start-up Investing

Alternative Investment Funds (AIFs) are regulated investment vehicles that operate under the guidelines of the Securities and Exchange Board of India (SEBI). AIFs provide opportunities for Indian investors to diversify their portfolios and access non-traditional investment avenues.

There are 3 Categories of AIFs in India

• Category I AIFs: These funds invest in startups, early-stage ventures, social ventures, small and medium-sized enterprises (SMEs), infrastructure, or other economically or socially beneficial sectors as defined by SEBI.
• Category II AIFs: These funds include private equity funds, debt funds, or funds that do not fall under Category I or Category III. Category II AIFs are subject to specific investment restrictions and may have strategies focused on real estate, distressed assets, or other alternative investments.
• Category III AIFs: These funds employ complex trading strategies and may use derivatives for hedging or speculative purposes. Category III AIFs are typically hedge funds or funds that carry out high-risk trading activities.

Fractional Real Estate

• Fractional ownership is a method wherein an asset is owned by many people Fractionally, Where the term “Fractional” implies that the asset is divided into parts for the purpose of initial capital.
• A Special Purpose Vehicle (SPV) is formed to process the ritual of Fractional Ownership. SPV is a Private limited Company which is formed to carry out financial transactions. Investors become the shareholders of the SPV, which will own the property. All Rental income and related expenses are shared between them.
• Fractional Real Estate is emerging as a new Investment opportunity as it was earlier accessible to only top 1% of the population.

Here’s some features of Investing in Fractional Real Estate

• Lower Capital to own Real estate.
• Higher stable yield along with flexible liquidity.
• Less Correlation to Stock Markets.
• Earn monthly income from the rental yields