Alternative investments such as Private Equity, Multi Strategy Hedge Funds and Private Credit have long been inaccessible to the average investor. Future Wealth’s clients now have access to a growing list of private investments that provide more diversification and reduce volatility to their portfolio of public market securities.
Here is how the process of owning hedge funds or private equity will work for our clients. As your financial advisor, Future Wealth LLC will conduct due diligence by examining fund profiles and holdings of several hedge funds and private equity funds to identify the best investment options for you. Future Wealth LLC will reach out to these funds and work with our custodian – Schwab to get the paperwork needed to take positions in one or more of the funds. Transactions and paperwork are all executed through Schwab. Schwab forwards your paperwork, completes transactions, custodies the assets, and delivers trade confirmations for each transaction. All the investments will appear directly on client statements along with your other holdings at Schwab. Distributions (dividends) from these private investments will automatically be deposited into your Schwab account as well.
Future Wealth LLC will not charge any additional fees for the access to these private investments and neither does Schwab charge any transaction, administration, audit, or custody fees. The only fees that a client will incur to hold these investments will be the expense fees of hedge funds and private equity funds. These are akin to mutual fund and ETF expense ratios and will be reflected in the NAV (Net Asset Value) of the fund.
Through the offering of private equity and alternative investments, Future Wealth LLC has now added to the growing suite of financial services we provide to our clients – Brokerage accounts, IRA, Roth IRA, 401K rollovers, 529s, Joint accounts, Minor accounts, Trust accounts, Life insurance investments, Options trading and backdoor Roth IRAs.
We look forward to adding valuable alternative investments to your portfolio.