8/18/2026 1:32 AM (PST)

When evaluating alternative investment solutions, investors should begin with the fundamentals rather than focusing only on projected returns. Key questions include: What is the underlying asset? What drives the investment's returns? How liquid is the investment? What is the expected holding period? What fees and expenses apply? What are the major risks? How is the investment valued? How frequently will investors receive reporting? Does the investment fit the investor's broader portfolio strategy? For life settlements, investors should also understand the policy characteristics, life-expectancy estimates, premium requirements, purchase price, projected cash flows, and assumptions used in the pro forma. A transparent process is particularly important for alternative assets because they may be less familiar than publicly traded securities. The objective should be to identify investments that complement an existing portfolio rather than simply adding complexity.