Alternative Investments & Private Markets: Should Calgary Investors Consider Them?

Alternative Investments & Private Markets: Should Calgary Investors Consider Them?

In recent years, more Calgary investors have begun exploring alternative investments — private credit, private equity, real estate funds, infrastructure, and other non-traditional asset classes.

With more volatility in public markets, rising interest rates, and a growing desire for diversification, alternatives now play an important role in many long-term wealth strategies.

Working with a trusted Financial Advisor in Calgary can help determine whether private investments belong in your portfolio — and how to evaluate them properly.

Here’s what Calgary professionals, retirees, and business owners need to know.

What Are Alternative Investments?

Alternative investments are assets outside the traditional stock and bond markets. Examples include:

• Private credit
• Private equity
• Real estate development
• Private REITs
• Infrastructure projects
• Hedge strategies
• Venture capital
• Private debt

These investments typically have lower liquidity but can offer higher potential returns or stability when used strategically.

Why Alternatives Are Increasingly Popular in Calgary

Lower Correlation to Public Markets

Alternatives tend to behave differently than stocks and bonds, providing stability during market volatility.

Attractive Income Potential

Private credit and private real estate often deliver higher yields than traditional fixed income.

Inflation Protection

Assets like real estate and infrastructure often move with inflation.

Diversification

Adding alternatives can reduce portfolio risk and smooth long-term returns.

Who Should Consider Alternative Investments?

Alternatives are not for everyone. They may be appropriate if you:

• Have a long-term investment time horizon
• Have sufficient liquidity
• Are a high-income earner or business owner
• Seek reduced volatility in your portfolio
• Want exposure beyond public markets
• Can tolerate longer lock-up periods

A Financial Planner in Calgary can help evaluate whether your risk profile and financial goals align with alternative investments.

Key Risks to Understand

Limited Liquidity

Many alternative funds restrict withdrawals, sometimes for years.

Valuation Transparency

Pricing may not update daily like publicly traded securities.

Concentration Risk

Some investors over-allocate to real estate or private deals without proper diversification.

Higher Minimums

Alternative investments typically require larger contributions.

Higher Fees

Because they require specialized management, alternatives often come with elevated fee structures.

This makes due diligence essential.

How to Integrate Alternatives into a Wealth Plan

Define the Purpose

Income? Growth? Stability? Inflation protection?

Each alternative investment serves a different function.

Set an Allocation Limit

Most clients allocate between 10–35% of their portfolio to alternatives depending on risk tolerance and liquidity needs.

Use Institutional-Quality Managers

Only work with vetted firms with strong track records, transparency, and disciplined underwriting.

Combine with Traditional Assets

Alternatives should complement — not replace — equities and fixed income.

Why Alternatives Appeal to Calgary Business Owners

Business owners often value alternatives because they:

• reduce reliance on public markets
• offer income streams after selling a business
• smooth out cash flow
• help diversify beyond their company’s industry
• provide inflation-protected real estate exposure

They’re also increasingly used in corporate investment accounts.

Final Thoughts

Alternative investments can offer powerful benefits — diversification, income, stability — but only when aligned with your overall wealth strategy and risk profile.

If you’re curious whether alternatives make sense for your portfolio, I’d be happy to walk through your options.

Book an Alternative Investment Review:

👉 Schedule your introduction call today.