It’s also about the ability to diversify your investments beyond stocks and bonds to include private equity, real estate and other alternative investments. This allows you to spread risk, reduce exposure to market fluctuations and find new growth opportunities.
That’s why members of ultra-exclusive investing and networking groups, such as Tiger21, GoBundance, Collective Genius, R360 and YPO, are putting their money into private equity, real estate and other alternative investments.
Luckily, DLP Capital offers an opportunity for those who want to invest like the ultra-wealthy. This high-growth impact investor offers an impressive array of real-estate backed private equity funds designed to produce consistent high-yield returns.
Why the ultra-wealthy are targeting private equity and real estate
Private equity is a source of investment capital that typically comes from buying private companies or taking control of public companies and then taking them private. While this has the potential to offer higher-than-average returns, it’s only available to high-income and UHNW individuals — not the general public. While it does help with portfolio diversification, private equity can be risky, such as the potential for falling tech valuations.
The vast majority of ultra-high-net-worth (UHNW) investors are investing in private equity (PE), with 84% currently invested and 10% actively interested, according to The Ultra-High Net Worth Private Equity Investing Report 2023 from Campden Wealth, a family-owned, global membership organization.
UHNW investors also have an eye on real estate. Though tied to the broader economy, real estate offers the potential for long-term appreciation and wealth preservation. But it’s more than that: A study by the Bank of America uncovered a generational shift in approaches to investing, where young, wealthy investors favor private equity, real estate and other non-traditional investment alternatives.
Typically, UHNW investors are looking for growth opportunities that can outperform the market — which is why real estate is becoming an increasingly enticing option. Residential real estate, which includes houses, condos, townhouses, duplexes and co-operatives, is typically considered a stable investment that can help achieve consistent double-digit returns.
Those who don’t want the hassle of managing properties can instead invest in real estate investment trusts (REITs), in which they own a smaller piece of an investment (similar to fractional stocks). Private REITs are also available, though investors typically have to be accredited or meet certain requirements.
DLP Capital works strictly with accredited investors in the U.S., reporting consistent double-digit returns across a range of funds. For the record, DLP stands for ‘Dream, Live, Prosper,’ with a mission to increase affordable housing for workers while generating high returns for investors.
As a high-growth impact investor, the firm leverages capital with real estate-backed investments to build wealth for its investors, clients and partners based on years of industry experience. Since launching in 2006, it has completed hundreds of successful investments in the distressed and value-add single-family rental and multifamily real estate space. Investors can choose from four real estate funds: the DLP Housing Fund, DLP Building Communities Fund, the DLP Preferred Credit Fund and the DLP Lending Fund.
DLP’s impact funds are designed to produce consistent, high-yield returns while providing security, stable growth and cash flow for investors. To date, the firm has $5 billion in assets under management, including 18,000 housing units. This approach inspires loyalty: 70% of its capital comes from investors increasing the size of their investments.
DLP has also made Inc. 5000’s list of “Fastest-Growing Private Companies in America” for 11 consecutive years, and the Financial Times ranked it among the top 250 fastest-growing companies in the Americas for 2023.
Combining high returns with positive societal impacts
Returns aren’t the only motivator for UHNW investors: one-third of survey participants also hold ‘responsible’ private equity investments. The idea behind impact investing is to generate positive social or environmental impacts, along with financial gains.
Responsible investing doesn’t mean you’ll be taking a hit on returns. There’s a common perception that ‘responsible’ investments don’t perform as well financially. Yet, about 88% of impact investors said their investments either met or exceeded expectations in a report by the Global Impact Investing Network.
According to the report, a large percentage (73%) of younger people believe it’s impossible to achieve above-average returns on traditional stocks and bonds, which could be why they’re allocating only half as much to stocks as older generations. But all age groups are interested in ownership of sustainable investments — though for younger investors, it’s now the norm.
Rather than financing the next generation of luxury condos, DLP’s funds are designed to build, improve and preserve the country’s supply of attainable housing for everyday working Americans. In other words, you’re investing in housing projects for people at or below the average income level in a particular area, with rents that typically cost families no more than 30% of their income.
So far, DLP has helped to provide rental homes to more than 85,000 people, with plans to provide for hundreds of thousands more. Plus, the firm has committed to using sustainable, local building materials in its projects.
Find out more about how to invest like the ultra-wealthy while making a positive societal contribution at DLP Capital
