Alternative investments can provide meaningful diversification, income, and return potential uncorrelated with public markets. But they also come with complexity, illiquidity, and — in most advisory relationships — significant conflicts of interest.
As a fee-only fiduciary, we evaluate every alternative investment on its merits alone. No selling agreements. No placement fees. No incentive to recommend one product over another. Just objective analysis of whether it belongs in your portfolio.
Private placements, non-traded REITs, interval funds, and structured products frequently carry upfront commissions of 5–8% and ongoing trailing fees paid to the selling advisor. That means every dollar you invest is immediately worth less — and your advisor had a financial incentive to put you there regardless of whether it was the right fit. As a fee-only fiduciary, we receive none of that. We evaluate alternatives the same way we evaluate any other investment: on risk-adjusted merit, fit with your portfolio, and alignment with your goals.
Many alternative investment products carry upfront commissions paid to the selling broker. On a $500,000 investment, that's $25,000–$40,000 that never goes to work for you — paid to whoever recommended it.
We receive no placement fees, selling commissions, or compensation of any kind from alternative investment sponsors. Our only compensation is the advisory fee you pay us directly — 0.50% annually on assets under management.
As registered fiduciaries, we are legally required to evaluate every investment — alternative or otherwise — based solely on whether it serves your best interests. That obligation doesn't change based on how an investment compensates its sponsors.
Not all alternatives are created equal. We evaluate each category on its own terms — liquidity profile, fee structure, manager quality, tax treatment, and how it complements your existing portfolio. Here are the primary alternative categories we work with.
Direct investment in private companies or funds. Typically illiquid with 5–10 year lock-ups but historically higher return potential. We evaluate manager track record, fee structures (management + carry), vintage year diversification, and minimum investment thresholds. Available to accredited investors under Regulation D (506b/506c).
Pooled real estate investment through private offerings. Can provide income, appreciation, and tax benefits including depreciation passthrough. We distinguish between institutional-quality sponsors and retail-marketed products — and evaluate deal structure, sponsor experience, and fee waterfall carefully.
A middle ground between fully illiquid private investments and daily-liquid mutual funds. Interval funds offer quarterly redemptions and access to strategies typically reserved for institutional investors. We evaluate them as portfolio tools, not products, examining underlying strategy, fee structure, and actual liquidity terms.
Direct lending, mezzanine debt, and other private credit strategies can offer attractive yields in a fee-only structure. We evaluate credit quality, covenant protection, manager experience, and how private credit exposure complements the interest rate sensitivity of the broader portfolio.
Alternatives require a higher standard of due diligence than publicly traded securities. We apply a consistent framework to every opportunity — and we say no far more often than we say yes.
We map every fee layer — management fees, performance fees, acquisition fees, disposition fees, and any selling commissions. If the total fee burden materially impairs the return case, we don't recommend it.
Illiquid investments are only appropriate when you genuinely don't need that capital for the investment's duration. We model your liquidity needs carefully before recommending anything that restricts access to your funds.
An alternative investment's value depends largely on how it interacts with everything else you own. We evaluate correlation, concentration, and whether the addition actually improves your portfolio's risk-adjusted return profile.
Alta Financial Group's founder, Hooman Altafi, serves as VP of Investments for Alta Nova High Income Fund — a private closed-end fund structured under Regulation D (506c) for accredited investors. Alta Nova is designed to provide high income and diversification in a structure that prioritizes investor alignment over product distribution.
Structured as a Regulation D 506(c) offering, available exclusively to verified accredited investors. General solicitation is permitted under this exemption, with investor verification required before participation.
Alta Nova is designed to generate high current income for investors — targeting yield opportunities across a diversified set of income-producing strategies managed with a disciplined, risk-aware approach.
The fund structure is designed around investor outcomes. Hooman Altafi's direct involvement as VP of Investments means the same fiduciary mindset that governs Alta Financial Group's advisory practice extends to the fund's management.
The SEC defines accredited investor status to identify individuals with sufficient financial sophistication and resources to participate in private offerings. If you qualify, a range of private market opportunities becomes available that most retail investors cannot access. Understanding your status — and how to use it thoughtfully — is one of the first conversations we have with clients who are interested in alternatives.
Annual income exceeding $200,000 individually or $300,000 jointly with a spouse for each of the past two years, with reasonable expectation of the same in the current year.
Net worth exceeding $1,000,000 individually or jointly with a spouse, excluding the value of your primary residence. This is the most common qualification path for high-net-worth investors.
Holders of Series 7, Series 65, or Series 82 licenses in good standing qualify regardless of income or net worth — an expansion introduced in the 2020 SEC accredited investor rule amendments.
Schedule a conversation with Hooman Altafi to discuss whether alternative investments belong in your portfolio — evaluated with zero commission incentives and a legal fiduciary obligation to your best interests.
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