Rogers said that real estate investment opportunities in 1031s, REITs (real Estate Investment Trusts), and Qualified Opportunity Zone Funds (QOFs) provided another example of a bespoke alternative investment. To reduce the element of investment risk, he said that Arete Wealth thoroughly vets such opportunities before the firm’s advisors will recommend them.
Rogers said that his firm specialized in working with investment sponsors who have traditionally raised capital only from institutions and ultra-high-net-worth families in what are sometimes referred to as “club deals.”
“We help these sponsors expand their distribution into a broader network of high net worth retail investors,” he said. “The idea is to connect Arete Wealth’s advisors and their clients with the type of quality investment options and sponsors that are usually reserved for, and seen only by, university endowments and family offices.”
He said that Arete Wealth’s acquisition of Center Street helped his firm broaden its reach and achieve more scale, which in turn helped advisors, clients and product sponsors achieve improved results at lower costs.
Private Wealth asked Rogers if Arete Wealth intended to look for a future partner with something different than Center Street had brought to the table, or would the firm look for similar capabilities.
“Arete Wealth is always interested in doing whatever we can to find ways in which we can better serve our investors and advisors,” Rogers said. “However, the M&A strategic plan for 2021 is to focus on the Arete Wealth and Center Street partnership to ensure the most efficient, successful integration possible.”
The two companies, which will strategically combine their entities throughout 2021 under the Arete Wealth, Inc., brand, anticipate distributing approximately a quarter billion dollars in alternative investments, based on previous years’ performance.