What we offer
Grofolio provides investors with access to a variety of high quality, pre-vetted alternative investments. We do not focus on any particular industry or market segment, nor are the offerings on our platform limited to a particular structure. Instead, we seek to provide access to opportunities that accommodate the investment strategies and interests of a broad range of investors.
Perhaps you are generally content with the traditional stock and bond markets, but wish to add a bit of diversification and non-correlation to your portfolio. Or maybe you are fed up with the entire public market roller coaster, and are ready to migrate a larger chunk your investable assets into private opportunities, but you don't know where to look. Or maybe you are already an active angel investor, but you are generally exposed to deals only in certain verticals, and would like access to opportunities in different sectors in order to achieve further diversification.
Whatever your investment goals, our aim is to provide you with access to one or more opportunities that satisfy your needs. From equity to debt to income, from growth companies to private funds, across a range of industries, our focus is on listing high quality investments which are diversified vis-à-vis one another are well as the traditional markets.
Prospective investors should be aware that alternative investments frequently entail the risk of loss of the entire amount invested. Investors should carefully review all disclosure documentation in order to understand the risks associated with making an investment on our platform, and should be able to tolerate such risks.
What are alternative investments?
An alternative investment is one that falls outside the scope of traditional publicly traded stocks, bonds, mutual funds, and currency. The private nature of these investments means that their performance is frequently not correlated with the performance of the traditional public markets.
A classic example is an equity or debt investment in an early stage private company, but the term “alternative investment” is commonly used to refer to investment opportunities as diverse as: private equity, hedge, and venture capital funds; real estate; high-yield debt; oil and gas royalty deals; and more.
Today’s savvy private investors are learning what financially sophisticated institutions have long known: that adding alternative investments to their investment strategy can create growth, income, or both while reducing their exposure to the volatility of the broader public markets.
Although they provide many potential benefits to investors, alternative investments are frequently illiquid, and often entail the risk of loss of the entire amount invested. Investors should carefully review all disclosure documentation in order to understand the risks associated with making an investment on our platform, and should be able to tolerate such risks.
Who uses alternative investments?
Alternative investments have long comprised a significant portion of the portfolios of large endowments and pension funds. These sophisticated institutions use alternative investments in an effort to lower volatility in their portfolio and achieve higher returns. “Family offices”, i.e. private companies that manage investments for a single wealthy family, are also heavily invested in these types of assets.
In recent years, a series of mishaps on Wall Street have fostered a sense of skepticism towards traditional markets. Simultaneously, changes to US securities laws, most notably under the Title II of JOBS Act, are poised to liberalize, even revolutionize, access to alternative investments for retail investors. Meanwhile, investors who have watched their 401(k)s and brokerage accounts crater in 2008-2009, and fluctuate up and down since then, have begun to demand access to the types of deals that the wealthiest, most connected institutions and individuals have long enjoyed.
So the answer to the question “Who uses alternative investments?” is shifting underfoot. Until very recently, the answer was generally “family offices, endowments, large institutions, and Wall Street insiders”. Today, the answer is “any accredited investor who is savvy enough to know where to look for them.”
Our investment opportunities
Grofolio provides investors with access to a variety of high quality, pre-vetted alternative investments in order to accommodate the specific needs of our various investors. Our goal is to provide every investor with at least one, and ideally several, private investment opportunities that are appropriate for his or her portfolio.
These investments are typically described in a Private Placement Memorandum, though other documentation may apply depending on the opportunity. Each investor must carefully read the disclosure documentation for an opportunity before investing.
Every deal available on the Grofolio platform has gone through a FINRA-compliant due diligence process, performed by Bendigo Securities, LLC, our unaffiliated broker-dealer partner. Similarly, investors will need to comply with Bendigo’s “know-your-customer” procedures before investing. While not guarantees of success, these procedures help us to maintain the integrity of our private offering marketplace.