Bailey Wealth Group is increasing its focus on private market investments as more qualified investors look for opportunities outside of traditional stocks and bonds.
The company plans to give eligible clients greater access to investments linked to real assets, starting with real estate. Private market investments have historically been available mainly to large financial institutions, fund managers and ultra-wealthy investors.
According to Bailey Wealth Group CEO Keisha Bailey, these investments can help investors diversify their portfolios while also providing businesses and property developers with alternative sources of financing.
BWG plans to work with financial institutions and other industry partners to create specialised investment opportunities for a limited number of investors. The investments will be structured with a medium-term timeline and a clearly defined exit strategy.
The company’s first private market opportunity will combine direct investment in real estate with exposure to publicly traded real estate investment trusts, commonly known as REITs.
Direct real estate investments may provide investors with income and potential property appreciation. REITs, meanwhile, can offer greater diversification and may be easier to buy or sell than privately held property investments.
For qualified investors, this could create another way to build wealth without relying entirely on the performance of the stock market. Real estate and other private assets may also help spread investment risk across different asset classes.
However, private investments are not suitable for everyone. They may require a high minimum investment, and investors could have limited access to their money for several years. The investments may also be difficult to sell quickly, and returns are not guaranteed.
Investors should carefully review the fees, risks, expected returns, investment timeline and exit strategy before committing their money.
The bigger takeaway is that Bailey Wealth Group is seeking to widen access to opportunities that were once reserved for a small group of institutional and wealthy investors. While this could provide qualified Jamaicans with more ways to diversify and grow their wealth, investors must ensure that these opportunities match their financial goals, risk tolerance and need for cash.