Private and Alternative Investing 101

We believe in providing Canadians with the principles of wealth creation and the ACCESS to tools and products that are truly aligned with the principles of wealth creation.

The Mandeville Difference

The role models like Warren Buffett and the largest and most successful institutions like the Canada Pension Plan (CPP) which manages $409.6 Billion3 for the benefit of every Canadian, have an asset mix of public, private and alternative investments.

At Mandeville we understand that investors share the same investment needs as the role models.

We therefore emulate our role models and provide access to quality traditional public investments that address liquidity needs as well as quality private and alternative investments that provide high long-term growth potential.

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Why do our role models invest in private and alternative assets?

Private investments have several key differences from public securities. Unlike public securities which are tradable every business day, and are marked-to-market every minute, or every day. Private and alternative investments:

  • Dampen overall portfolio volatility as they are not marked-to-market daily.
  • May have high long-term growth potential.

Understanding Illiquidity Discount

Public companies are liquid which means you can buy and sell them daily on the public markets. What investors may not realize is that they are paying a significant premium for that liquidity. Unlike publicly traded businesses, private businesses aren’t as liquid and take time to sell. As a result a liquidity discount is often applied to their valuation which means you can purchase a private company with essentially the same qualitative and quantitative characteristics as a public business for a 20-30%4 discount which translates into higher return potential.

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