First of all, a fundamental concept in the operation of alternative investments is: the market may not necessarily be efficient, and the prices of many companies and projects do not reflect their intrinsic value. Therefore, the farther away from the public trading platform, the worse the relationship between price and value. The deviation may be higher. The focus of alternative investment is on companies and projects that are not listed but have packaging potential. Through purchase, reorganization, packaging, and cash out, the value of the acquired companies or projects is reflected.
In addition, because it does not operate on a public trading platform, a major feature of alternative investments is the lack of liquidity. It usually takes several years from purchase to cash out of a project, so alternative investment funds generally have a lock-in period of 5 to 10 years, making redemption midway difficult.
The products are investment methods outside of public trading platforms such as stocks, bonds and futures, including Private Equity, Venture Capital, Leveraged Buyout, Fund of Funds and many other non-public varieties.
Direct investment refers to investment in the equity of non-publicly issued companies, and the investment income is realized through the sale of equity when the company is listed or acquired in the future.