Chris Chakford on Alternative Investments: Private Equity, Private Credit, and Real Estate as Keys to Portfolio Diversification

Illinois, US, 20th April 2025, ZEX PR WIRE, Alternative investments have long been a focal point for institutional investors, but as financial markets continue to evolve, individual investors are increasingly looking beyond traditional stocks and bonds. According to Chris Chakford, a seasoned expert in financial markets with nearly three decades of experience, alternative investments such as private equity, private credit, and real estate are critical components of a well-diversified portfolio.

“Public markets have their place, but they are not the end-all, be-all for investors looking to generate wealth and mitigate risk,” Chakford states. “Alternative investments offer a layer of diversification that traditional asset classes simply can’t provide.”

Private Equity: Unlocking Value Beyond the Public Markets

Chakford sees private equity as a key driver of long-term investment success. Unlike publicly traded companies, private equity investments provide access to companies at earlier stages of growth, where valuations are often more attractive and potential returns greater.

“Private equity investments allow investors to participate in a company’s growth before it reaches the public markets, which can lead to significant upside potential,” says Chakford. “While they do come with a longer investment horizon and less liquidity, the benefits of compounding growth and hands-on management can yield impressive results.”

Private Credit: A Resilient Income Stream in Any Market Cycle

Private credit, another critical area of alternative investments, has seen growing interest in recent years as investors seek yield in an environment of fluctuating interest rates. Chakford believes that private credit strategies provide a compelling opportunity to generate consistent returns with relatively lower volatility.

“With traditional bonds struggling to keep up with inflation and central bank policies creating uncertainty, private credit can serve as a reliable income stream,” Chakford explains. “Institutional investors have capitalized on private credit for years, and now more high-net-worth individuals and family offices are recognizing its potential.”

According to Chakford, private credit offers the ability to tailor financing solutions to businesses that may not have access to traditional bank loans. This not only benefits borrowers but also provides investors with attractive yields and security through collateral-backed lending structures.

Real Estate: A Tangible Asset with Enduring Value

Real estate has historically been a cornerstone of wealth preservation, and Chakford remains bullish on its role in alternative investment portfolios. “Real estate is a tangible asset that serves as a hedge against inflation while providing cash flow and appreciation potential,” he notes.

Whether through direct ownership, real estate investment trusts (REITs), or private real estate funds, Chakford sees opportunities across various segments, including residential, commercial, and industrial properties. “The key is understanding market dynamics, demographics, and economic trends,” Chakford adds. “Smart investors are moving into specialized real estate sectors like multifamily housing, logistics centers, and data centers, where demand is structurally strong.”

The Future of Alternative Investments

With financial markets experiencing heightened volatility, Chakford argues that alternative investments will continue to play a significant role in portfolio construction. He emphasizes the importance of due diligence and working with experienced professionals to navigate the complexities of private markets.

“These assets are not as simple as buying an index fund,” Chakford warns. “Investors need to understand the nuances of private equity deals, the creditworthiness of private lending opportunities, and the underlying fundamentals of real estate investments. This is where experienced asset managers can provide invaluable guidance.”

Chakford, as the Founder and CEO of Divergent Capital Asset Management, has dedicated his career to providing strategic investment management for private clients, RIAs, and family offices. His firm specializes in crafting bespoke portfolios that incorporate alternative investments with institutional-grade risk management strategies.

Final Thoughts: Alternative Investments as a Necessity, Not an Option

“Alternative investments are no longer just a niche category; they are essential for any investor looking to build long-term wealth and manage risk effectively,” Chakford asserts. “With careful selection, thoughtful execution, and a strong network of financial professionals, investors can unlock opportunities that traditional markets simply cannot offer.”

For those interested in learning more about how alternative investments can enhance portfolio resilience and growth, Chris Chakford and his team at Divergent Capital Asset Management continue to provide expert guidance and innovative solutions in this evolving financial landscape.