Alternative investment platform Alto has launched a program that will give investors access to several alternative investment funds available through its registered broker/subsidiary, Alto Securities LLC. The funds represent what Alto Securities CEO Scott Harrigan calls “historically difficult-to-access private investments.”
Called Alto Marketplace and initially aimed at investors with accredited status, qualified buyers and qualified customers, the program includes funds that focus on farmland (Farmland LP's Vital Farmland Fund III), whiskey (Vinovest Capital Whiskey Fund SPV) and secondary ( Alto Capital Hamilton Lane PAF SPV ).
Currently, investment minimums for these funds range between $10,000 and $50,000. Later in the year, Alto hopes to add registered funds with lower minimums that will be accessible to retail investors, according to Alto founder and CEO Eric Satz.
“The mission is creating access for all,” he said. “So while we are starting with investment opportunities that are geared towards the investor who has already accumulated a certain level of wealth and/or is earning a certain income today, the idea remains to bring deals to market that are achievable for everyone and help diversify portfolios.”
The funds currently included in the Marketplace were selected based on Alto's long-term relationships with their GPs and the firm's comfort level with their data, Satz said. Alto plans to raise funds focusing on private debt and art, as well as additional real estate and venture capital funds for the program in the future.
Satz estimates that approximately 95% of the investments already entering the program come from Alto's self-directed IRA accounts. Since Marketplace funds are mostly illiquid, long-term investments, they work well with longer payment horizons, Satz added.
“The idea here is to have a thesis to make an investment and see it through,” he said. “It's about real alternative assets and making long-term investments with long-term investable dollars. That's why using your retirement money makes so much sense here because you can't touch your retirement money for a long period of time anyway. You can also benefit from a liquidity premium while investing.”