Ever wondered about the allure of private credit, especially in our rising interest rate environment? 

Join Tad Fallows, Managing Director of Long Angle and an expert in the alternative assets space, and elucidate why lending to enterprises, not just individuals, is the next big thing. Uncover the thrill of fetching 12% interest rates, spiced up with equity warrants, his investment thesis and approach to real estate, asset allocation, raising kids with wealth, and building a collaborative online discussion community.

 

[00:00 - 11:04] Beyond Real Estate Syndications

• Tad Fallows of Long Angle detailed his shift from a software startup to leading a high net worth investment community
• Tad underscores diversification, emphasizing the value of private credit in sectors like cannabis
• He points to the potential in secondary shares, offering quicker ROI through discounted purchases
• Tad suggests the current market might be ripe for venture capital investments despite their risks

 

[11:05 - 22:05] [highlight=rgb(247, 247, 248)]The Modern Landscape of Alternative Investments

• Diversification now spans from real estate to areas like royalty streams and aging spirits
• Private credit covers real estate loans and niche high-return lending
• Search funds, often led by business grads, aim for 30-35% annual returns
• Access to search funds is largely based on relationships and sponsor reputation

 

[22:06 - 35:12] Search Funds and Diverse Investment Strategies

• The concept of search funds was underscored, emphasizing its potential for significant investor returns, as demonstrated by Stanford's study
• For broader diversification, investors can consider sponsors that aggregate multiple search funds, leveraging their expertise
• The distinction between early-stage and late-stage VC investments was clarified, with big data providing insights into potential high-growth companies
• The sensitivity of real estate to interest rate fluctuations was highlighted, emphasizing its unique position compared to other assets

 

Connect with Tad:

Linkedin

or visit his webpage: https://www.longangle.com/

 

Key Quote:

"The only way you really make your total returns work in this early-stage venture world is to have things that are 10 X or above because most of them are going to zero, so you need a handful of these unicorns that are really driving your whole portfolio" - Tad Fallows

 

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