ARTECULATE
No Result
View All Result
  • News
  • Premium
  • Features
    Visa | eCommerce

    Visa’s eCommerce Solutions Are Opening New Doors for Merchants to Offer Better Customer Experiences

    Optimizing Business Transportation: How PickMe Corporate is Helping Companies Save Up to 35% on Transportation Costs

    Optimizing Business Transportation: How PickMe Corporate is Helping Companies Save Up to 35% on Transportation Costs

    The Visa Global Innovation Tour: Collaborative Opportunities Enabling Sri Lankan Fintechs to Grow

    The Visa Global Innovation Tour: Collaborative Opportunities Enabling Sri Lankan Fintechs to Grow

    A Winning Formula: Zone24x7’s Inclusive Approach to Employee Development and Client Success

    A Winning Formula: Zone24x7’s Inclusive Approach to Employee Development and Client Success

    John Keells X Corporate Accelerator Meetup

    The John Keells X Chronicles Part II: Mastering the Fundamentals of Building Sustainable Startups

    LEARN Workshop Training in Sri Lanka

    LEARN is Empowering Local Universities to Unlock the Full Potential of their Digital Infrastructure

    How Taran’s Data Science Expertise Elevated the iPrice Customer Experience

    How Taran’s Data Science Expertise Elevated the iPrice Customer Experience

    The John Keells X Chronicles Part I: Passionate Startup Founders Meet Industry Veterans

    The John Keells X Chronicles Part I: Passionate Startup Founders Meet Industry Veterans

    Creating Cultures of Respect: A Year Later DCLK’s Journey to Build Inclusive Workplaces Continues

    Creating Cultures of Respect: A Year Later DCLK’s Journey to Build Inclusive Workplaces Continues

    Inside Wiley Sri Lanka: The Professionals Empowering Research and Education through Technology

    Inside Wiley Sri Lanka: The Professionals Empowering Research and Education through Technology

  • Startups
  • Events
  • Hotpicks
  • Community
    Unlock The Secrets of Startup Funding with Founders Institute Sri Lanka

    Unlock The Secrets of Startup Funding with Founders Institute Sri Lanka

    The RiskSense Story: Building a Cyber Security Product

    The RiskSense Story: Building a Cyber Security Product

    Negotiating to Thrive – Lessons from a Hostage Negotiator

    Negotiating to Thrive – Lessons from a Hostage Negotiator

    First wildlife travel-based management lessons book by Sarath Perera to be launched

    First wildlife travel-based management lessons book by Sarath Perera to be launched

    Hack:bit 2020 is bringing the ideas of students and undergraduates to life

    Hack:bit 2020 is bringing the ideas of students and undergraduates to life

    ESCaPe 2020: University of Peradeniya’s Engineering Students Conference

    ESCaPe 2020: University of Peradeniya’s Engineering Students Conference

    Trending Tags

    • Contributor
    • Billboard
    SUBSCRIBE
    • News
    • Premium
    • Features
      Visa | eCommerce

      Visa’s eCommerce Solutions Are Opening New Doors for Merchants to Offer Better Customer Experiences

      Optimizing Business Transportation: How PickMe Corporate is Helping Companies Save Up to 35% on Transportation Costs

      Optimizing Business Transportation: How PickMe Corporate is Helping Companies Save Up to 35% on Transportation Costs

      The Visa Global Innovation Tour: Collaborative Opportunities Enabling Sri Lankan Fintechs to Grow

      The Visa Global Innovation Tour: Collaborative Opportunities Enabling Sri Lankan Fintechs to Grow

      A Winning Formula: Zone24x7’s Inclusive Approach to Employee Development and Client Success

      A Winning Formula: Zone24x7’s Inclusive Approach to Employee Development and Client Success

      John Keells X Corporate Accelerator Meetup

      The John Keells X Chronicles Part II: Mastering the Fundamentals of Building Sustainable Startups

      LEARN Workshop Training in Sri Lanka

      LEARN is Empowering Local Universities to Unlock the Full Potential of their Digital Infrastructure

      How Taran’s Data Science Expertise Elevated the iPrice Customer Experience

      How Taran’s Data Science Expertise Elevated the iPrice Customer Experience

      The John Keells X Chronicles Part I: Passionate Startup Founders Meet Industry Veterans

      The John Keells X Chronicles Part I: Passionate Startup Founders Meet Industry Veterans

      Creating Cultures of Respect: A Year Later DCLK’s Journey to Build Inclusive Workplaces Continues

      Creating Cultures of Respect: A Year Later DCLK’s Journey to Build Inclusive Workplaces Continues

      Inside Wiley Sri Lanka: The Professionals Empowering Research and Education through Technology

      Inside Wiley Sri Lanka: The Professionals Empowering Research and Education through Technology

    • Startups
    • Events
    • Hotpicks
    • Community
      Unlock The Secrets of Startup Funding with Founders Institute Sri Lanka

      Unlock The Secrets of Startup Funding with Founders Institute Sri Lanka

      The RiskSense Story: Building a Cyber Security Product

      The RiskSense Story: Building a Cyber Security Product

      Negotiating to Thrive – Lessons from a Hostage Negotiator

      Negotiating to Thrive – Lessons from a Hostage Negotiator

      First wildlife travel-based management lessons book by Sarath Perera to be launched

      First wildlife travel-based management lessons book by Sarath Perera to be launched

      Hack:bit 2020 is bringing the ideas of students and undergraduates to life

      Hack:bit 2020 is bringing the ideas of students and undergraduates to life

      ESCaPe 2020: University of Peradeniya’s Engineering Students Conference

      ESCaPe 2020: University of Peradeniya’s Engineering Students Conference

      Trending Tags

      • Contributor
      • Billboard
      No Result
      View All Result
      ARTECULATE
      No Result
      View All Result

      Why Do Rich Investors Invest 10x More into Alternatives than the Rest?

      Arteculate Arteculate
      February 22, 2022
      · 5 mins read
      Why Do Rich Investors Invest 10x More into Alternatives than the Rest?

      Radek Jezbera - Co-Founder and CEO of KILDE

      Share on Facebook Share on LinkedinShare on Whatsapp

      The rise of alternative asset classes like private debt has created an exciting proposition for investors everywhere. Nowadays, these assets have proven to be the drivers of growth in portfolios, serve as protection against inflation, and act as a hedge against volatility in public markets. However, individual investors face intense challenges in accessing these assets. Co-Founder and CEO of KILDE, Radek Jezbera, explains, “It’s still very much an insider’s game, where opaque asset valuation reign, elitist group of experts form opinions, and investors cannot enter this asset class because of the high minimal entry ticket.” Through its regulated investment platform, which gives individual accredited investors access to unique deals, KILDE breaks down these barriers and makes alternative investments more accessible.

      You may also like

      Visa | eCommerce

      Visa’s eCommerce Solutions Are Opening New Doors for Merchants to Offer Better Customer Experiences

      February 8, 2023
      Optimizing Business Transportation: How PickMe Corporate is Helping Companies Save Up to 35% on Transportation Costs

      Optimizing Business Transportation: How PickMe Corporate is Helping Companies Save Up to 35% on Transportation Costs

      February 6, 2023
      The Visa Global Innovation Tour: Collaborative Opportunities Enabling Sri Lankan Fintechs to Grow

      The Visa Global Innovation Tour: Collaborative Opportunities Enabling Sri Lankan Fintechs to Grow

      February 3, 2023
      A Winning Formula: Zone24x7’s Inclusive Approach to Employee Development and Client Success

      A Winning Formula: Zone24x7’s Inclusive Approach to Employee Development and Client Success

      February 1, 2023

      The promise of alternative investments

      By definition, an alternative investment refers to financial assets that don’t fall into conventional investment categories such as stocks, bonds, and cash. Examples of these assets include private equity, hedge funds, managed futures, art and antiques, commodities, and derivatives contracts. Historically, individual investors stuck to highly liquid conventional assets. Recent macroeconomic trends, however, mean they’re no longer the safe bastions they used to be. 

      Since the pandemic began, stock markets have seen massive swings in volatility. Previously, investors sought refuge in bonds as a hedge against such volatility. However, low-interest rates and rising inflation mean this is no longer an economically viable option. As a result, investors see the value of their deposits and fixed-income investments diminishing. Alternative investments help decrease the volatility and improve the returns of the investment portfolios. In times of heightened volatility and rising inflation rates, such assets offer healthy diversification from the public markets. 

      Alternative assets made accessible by KILDE

      Two notable alternatives being made more accessible by KILDE are private debt and invoice financing. At a high level, both asset classes see investors offering capital to companies. Their difference lies in how the companies utilise this capital to generate value. Further, both asset classes provide higher returns to investors, and the credit risk profile of these companies is lower than companies of similar size in other industries. 

      Private debt, in this context, involves lending to non-banking financial companies. The KILDE platform allows accredited investors to finance non-banking financial institutions that offer consumer and SME loans. In doing so, these companies gain much-needed liquidity, enabling them to offer credit to help consumers and businesses alike. 

      Invoice financing involves purchasing invoices from Asian exporters to US and European markets. Typically, exporters have to wait approximately 90 days until these invoices are settled. As a result, they’re in a bind and struggle to settle expenses. KILDE allows accredited investors to finance companies looking to purchase these invoices and offer much-needed liquidity to exporters. 

      While it’s impossible to completely eliminate the credit risk, KILDE has taken a number of steps to protect investors. Firstly, it’s securing these investments with the underlying consumer and SME loan portfolios along with shareholders’ or corporate guarantees. Secondly, KILDE utilises data science to analyse the underlying consumer and SME loans to assess the level of risk that the investors are exposed to at the time of the investment and to predict with high probability any change in the risk of the asset, represented by a proprietary credit score. 

      The challenges in accessing alternatives today

      Investors

      Despite the benefits of alternatives, their penetration in investment portfolios of regular investors remains low. Most assets falling into this category are held by institutional investors or accredited, high-net-worth individuals. According to research by KKR, ultra-wealthy families had invested 3x more into alternatives compared to mass affluent investors and 10x more than retail investors. This observation begs the question of why? Why is it that only the wealthiest of investors are actively utilising alternatives? 

      Primarily, there’s the high minimum investment required to access deals of these assets classes. “Typically, this figure is around $100,000,” shares Radek before warning, “There are also many fees.” A typical alternative investment fund will also charge individual investors a 1% annual fee and a 15-20% performance fee, resulting in fees of 2-3% fees per year. The steep entry ticket alone already puts alternatives out of reach for most individual investors. 

      Further, such investments also have less opportunity to publish verifiable performance data that can help investors gauge the level of risk associated with them. However, new technology platforms, such as Kilde, are poised to change this status quo for alternative income investments. They’re doing so by bridging the information gap between investors and borrowers and reducing the costs associated with alternatives. Individual investors and institutional investors enjoy the resulting benefits. 

      How KILDE is helping overcome these challenges

      By design, KILDE allows individual accredited investors to invest alongside and on the same terms as institutional investors, such as private credit funds and family offices. In addition, all investments are held to maturity or redeemed at the same prices as purchased. Hence, the value of the investment itself is not subject to change, which addresses the problem of volatility. 

      Furthermore, KILDE is regulated and supervised by the Monetary Authority of Singapore. Investors’ funds are segregated and safeguarded by Rawlinson & Hunters Trust in the DBS Bank in Singapore. KILDE also has one of the lowest fees in the alternative investment space at just 0.5% on the amount invested per annum, with gross returns reaching 11.5% yearly. With a $100 minimum investment, these features already eliminate most of the barriers that once made alternative assets hard to get.

      Yet, that’s still only the beginning. While minimising the risk, as we saw earlier, KILDE also does the necessary leg work for investors. Primarily, covenants are constructed, which the borrowing company must comply with throughout the life of the investment continuously. In addition, collateral such as underlying loan portfolios and corporate or personal guarantees adds an extra security layer to the deals.

      Ultimately, through these efforts, KILDE is working towards making alternative investments more accessible.  It’s starting off by offering individual accredited investors opportunities to enjoy the benefits of investing in companies that offer consumer and SME loans. With its robust investment platform that leverages data science and is fully compliant with regulations in Singapore, KILDE is racing ahead of the competition and changing the status quo of alternatives. 

      Tags: KILDESponsored
      ShareShareSend
      Previous Post

      How Curlec is Enabling the Subscription Economy in Malaysia

      Next Post

      Creo 360 – A Great Place to Work On the Lookout for Champions

      Arteculate

      Arteculate

      Arteculate is your guide to the Asian tech industry. We give you unparalleled insights, accurate, local tech news, thoughtful features and sometimes scathing opinions on where things are headed. Stay tuned for the best of Asia!

      Recommended Stories

      Visa | eCommerce
      Features

      Visa’s eCommerce Solutions Are Opening New Doors for Merchants to Offer Better Customer Experiences

      February 8, 2023
      Optimizing Business Transportation: How PickMe Corporate is Helping Companies Save Up to 35% on Transportation Costs
      Features

      Optimizing Business Transportation: How PickMe Corporate is Helping Companies Save Up to 35% on Transportation Costs

      February 6, 2023
      The Visa Global Innovation Tour: Collaborative Opportunities Enabling Sri Lankan Fintechs to Grow
      Features

      The Visa Global Innovation Tour: Collaborative Opportunities Enabling Sri Lankan Fintechs to Grow

      February 3, 2023
      A Winning Formula: Zone24x7’s Inclusive Approach to Employee Development and Client Success
      Features

      A Winning Formula: Zone24x7’s Inclusive Approach to Employee Development and Client Success

      February 1, 2023
      John Keells X Corporate Accelerator Meetup
      Features

      The John Keells X Chronicles Part II: Mastering the Fundamentals of Building Sustainable Startups

      January 26, 2023
      LEARN Workshop Training in Sri Lanka
      Features

      LEARN is Empowering Local Universities to Unlock the Full Potential of their Digital Infrastructure

      January 25, 2023
      Leave Comment

      Recommended Stories

      Visa | eCommerce

      Visa’s eCommerce Solutions Are Opening New Doors for Merchants to Offer Better Customer Experiences

      February 8, 2023
      Optimizing Business Transportation: How PickMe Corporate is Helping Companies Save Up to 35% on Transportation Costs

      Optimizing Business Transportation: How PickMe Corporate is Helping Companies Save Up to 35% on Transportation Costs

      February 6, 2023
      The Visa Global Innovation Tour: Collaborative Opportunities Enabling Sri Lankan Fintechs to Grow

      The Visa Global Innovation Tour: Collaborative Opportunities Enabling Sri Lankan Fintechs to Grow

      February 3, 2023
      A Winning Formula: Zone24x7’s Inclusive Approach to Employee Development and Client Success

      A Winning Formula: Zone24x7’s Inclusive Approach to Employee Development and Client Success

      February 1, 2023
      The Visa Fintech Initiative: Sri Lanka – Empowering Local Startups With Opportunities To Go Global

      The Visa Fintech Initiative: Sri Lanka – Empowering Local Startups With Opportunities To Go Global

      January 30, 2023
      John Keells X Corporate Accelerator Meetup

      The John Keells X Chronicles Part II: Mastering the Fundamentals of Building Sustainable Startups

      January 26, 2023

      Popular Stories

      • Coca Cola and Avocado: A Partnership Rewarding Food Experiences

        Coca Cola and Avocado: A Partnership Rewarding Food Experiences

        0 shares
        Share 0 Tweet 0
      • Rhoda: The all-electric Sri Lankan Roadster

        0 shares
        Share 0 Tweet 0
      • Spotify Expands Into Sri Lanka: Exploring What It Has To Offer

        0 shares
        Share 0 Tweet 0
      • Leveraging the Power of AI: How EBI is Building a Digitally Inclusive Sri Lanka

        0 shares
        Share 0 Tweet 0
      • The DirectPay Story: Building a Virtual Bank One Digital Brick at a Time

        0 shares
        Share 0 Tweet 0
      No Result
      View All Result
      • News
      • Premium
      • Features
      • Startups
      • Events
      • Hotpicks
      • Community
      • Contributor
      • Billboard

      © 2020 Arteculate™ All Rights Reserved.

      Are you sure want to unlock this post?
      Unlock left : 0
      Are you sure want to cancel subscription?