
Alternative investments are hot in 2025. And for good reason:
They often move independently of the stock market
They're more lightly regulated (so there are more weird opportunities)
They’re typically less liquid—which is both a risk and a reason they’re undervalued
Here’s our look at 8 alt investment plays (plus a bonus). We cover what to know and where to look if you’re thinking about diversifying this year.
Note: this is a special Saturday deep-dive edition of Stocks & Income—you can expect these to hit your inbox every Saturday. You can reply to this email with specific topic requests for future Saturdays!
Get the signals hedge funds use (without paying hedge fund fees)
AltIndex tracks insider trades, social buzz, and hedge fund moves—so you can find your edge before Wall Street catches up.
1. Private credit
Private credit is quietly having a moment—and might be the strongest income-focused alt play right now.
You're not buying equity. You're loaning your money to private companies. And in return, you get regular interest payments and sometimes a share of the upside.
It’s illiquid. But it’s consistent. And that combo has more investors moving in.
These typically require $250K–$500K to get in—and multi-year lockups.
Not for entry-level investors, but worth checking out if you’re ready to step into the big leagues
Here’s what it takes to be an accredited investor:
$200,000/year income (or $300,000 with spouse)
$1M+ net worth (excluding your home)
Tier 2 funds come with lower minimums and easier access (i.e., you don’t always have to be accredited).
However, do your homework—trustworthiness and transparence may vary at this tier.
Yieldstreet: Private credit & structured notes
Fundrise: New fund, ~$1K minimum to enter
Moonfare: Curated private deals
iCapital: Gateway to high-performing credit funds
Tier 3 access (liquid options, public exposure):
BDCs (Business Development Companies) – Like $ARCC or $MAIN, publicly traded and yield-heavy (8–12%)
Interval Funds – Like Blackstone's BCRED, semi-liquid and available through major brokerages
How it works:
You give capital to a fund.
They lend to businesses (direct lending, mezzanine, distressed, etc.).
You receive interest (and sometimes equity upside) over 3–10 years.
If you're looking for consistent income outside of the stock market—and can part with your capital for a few years—this is one of the cleanest plays out there.
2. Private equity
Private equity is about buying into companies that aren't listed on public markets. These deals tend to be higher risk—but they also offer higher growth potential. Since these investments are less liquid, they often attract less competition. That can mean better pricing and more upside, especially for firms that know how to find undervalued assets.
Want to invest like the big dogs? You'll need to be one.
To access most private equity and venture capital deals:
You must be an accredited investor
You need to afford the minimums—$250K at the low end, but often $5M–$25M+
Unless you have relationships at a firm, it’s hard to break in. But if you do?
You may get access at lower minimums ($100K or less in some cases)
Top firms to watch:
Blackstone – $1.2T AUM
KKR – $637.6B
Carlyle Group – $453B
CVC Capital Partners – €202B
Thoma Bravo – $184B
Retail options are rare here. But if you're accredited and networked, it can be a powerful allocation.
3. Crypto (with restraint)
The majority of altcoins are still underperforming. The market looks weak outside of BTC, ETH, XRP, and maybe Tron.
The better play this cycle?
Invest in companies building crypto infrastructure or holding BTC/ETH on their books.
Examples:
Microstrategy, Inc.
MARA Holdings, Inc.
Galaxy Digital Holdings Ltd.
Note: we aren’t endorsing these companies as buys, just explaining the types of companies that we’re looking for.
Also, a note on altcoin season: People are always calling for “altseason.” But most who chase it get left holding the bag.
Our stance: If there is an altseason, we’re okay missing the very start. We'd rather miss 20% upside than eat a 90% drawdown.
4. Real estate (and farmland)
Real estate looks… shaky.
A rapidly increasing amount of housing markets have falling prices YoY.
Zillow’s latest data:
More cities have now slipped into “neutral” or “buyer’s market” territory
Several formerly hot metros are cooling fast
We’re not bearish long-term, but the next 6–12 months could still be rocky.
Prices are dropping, but they could keep dropping. Not saying that will happen for sure—but that's what it feels like to us.
But Farmland is a bright spot.
Why?
~10% average annual return over 30 years
Low correlation with public markets
Hedge against inflation
Strong fundamentals (growing demand, shrinking supply)
If you’re looking for real estate exposure with a longer horizon and more stability, farmland’s worth your attention.
5. Infrastructure
Infrastructure investing doesn’t get much attention—but it should. These are the systems our economy literally runs on: roads, ports, bridges, airports, power grids, broadband, water treatment plants, and renewable energy networks.
These investments tend to be more stable, less flashy, and longer-term in nature. They can generate steady cash flows and are often backed by long-term contracts or government support.
Ways to get exposure:
Direct ownership – Reserved for institutions, pension funds, or ultra-HNW investors
Private infrastructure funds – From firms like Brookfield, Macquarie, or BlackRock; offer bundled exposure
Public equities and ETFs – Toll road operators, MLPs, utilities like $NEE or $DUK
Infrastructure debt – Safer but lower-yielding; good for capital preservation
PPP (Public-Private Partnership) funds – Common in emerging markets; riskier but higher upside
In a world of aging infrastructure and rising stimulus spending, this space may outperform quietly for years.
6. Commodities
Most investors only think about oil and gold. But 2025’s biggest surprise? Platinum.
It’s outperforming gold, silver, and even equities in many cases.
Quick look:
Gold – Down slightly YTD; still solid for safety
Silver – More volatile, some upside
Platinum – The standout performer thanks to supply issues and growing demand in auto and industrial uses
Keep in mind: commodities are cyclical, and heavily influenced by global politics and economic shocks. But smart timing here can drive major upside.
7. Hedge funds (without the hedge fund)
Want hedge fund insight without the $10M minimum and 2-and-20 fees?
Tools like AltIndex let retail investors follow smart money by tracking:
Hedge fund activity
Insider buying/selling
Analyst upgrades/downgrades
Retail sentiment and social buzz
AltIndex essentially packages data that hedge funds already use—and delivers it in an actionable, user-friendly way. Think of it as a cheat code for leveling the playing field.
8. Structured products
Structured products include bonds, but also more complex derivatives.
Treasuries and corporate bonds – Still valid, but behaving more like equities lately (volatile, rate-sensitive)
CDS and CDOs – Remember “The Big Short”? These still exist and are used for yield and hedging
Why we’re skeptical in 2025:
U.S. and global debt levels are high
Japan’s debt market looks wobbly
Central bank policies remain unpredictable
In short: fixed income isn’t dead, but it’s weird right now. We’d rather wait until it’s a bit less chaotic before allocating seriously.
Bonus: Collectibles
Collectibles are fascinating. They’re also unpredictable and hard to price.
You’ve got people making millions on Mickey Mantle cards, finding ancient Roman busts in Goodwill, and now… Pop Mart Labubu toys selling for $170,000.
But these markets are tough to crack.
Upside:
Cultural virality can spark insane appreciation
Illiquid markets mean bargains if you know your stuff
Downside:
Prices are inconsistent
Supply is hard to track
You need deep, niche expertise to make smart buys
Most investors should tread carefully. But if you’re already immersed in a hobby or niche where you spot underpriced gems? You might have an edge (emphasis on might—don’t overestimate your knowledge or skill in deal hunting or bargaining just because you’ve played a lot of card games or collected stamps before).
That’s the end of our guide for now. If you liked this edition, let us know—we may create similar content in the future, or even dive deeper into individual markets from this guide.
Enjoyed this? Forward it to someone who’s hunting for better risk/reward plays in 2025.
We’ll be back Monday.
—S&I
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