Alternative Investing Report - October 14, 2025

*as of 10/13; Sources: S&P, BTC, FTSE, DJRE, CL50

Private credit funds and funds of funds led the way in Q2 as North American private capital strategies posted an overall 0.27% return. Real assets and private equity showed losses, but still rank first and second in the past year overall. For more recent vintages of funds, particularly in private equity and venture capital, the overall performance has been comparable to older vintages, just with significantly more volatility. Private credit has been the steadiest performer, with the most consistent returns and the lowest volatility.

➨ TAKEAWAY: As interest rates rose, the past three years have seen struggles for private markets, which have performed only about half as well as the public equities markets in that timespan. Within the asset classes, the best performers are still delivering outsized returns, but the bottom performers are seeing heavy losses, emphasizing the importance of picking the right fund managers and investments.

In the latest episode of Smart Humans, Slava Rubin, Jan-Erik Asplund and Christine Healey explore the investment landscape surrounding Elon Musk's companies, including Tesla, SpaceX, Neuralink, and xAI. The discussion also covers the risks associated with investing in Musk's ventures, and the unique characteristics of the Musk ecosystem.

🪙 Crypto market rebound: After losing more than $500 billion in total market cap, crypto made back half those losses, with double digit gains for some altcoins, and Binance coin (BNB) briefly hitting a new all-time high. The equities market also had a strong day after President Trump softened his tone on a possible trade war with China.

🎨 Indian art records: Led by a $7.5 million sale for a painting by Vasudeo Santu Gaitonde, a recent auction in Delhi fetched more than $40 million, the most ever for a South Asian art auction. It was the latest in a surging market for South Asian and Indian art, a market that is expected to triple in value by 2030.

🤖 SoftBank invests in robotics: The massive investment arm of SoftBank reached a deal to buy ABB Robotics for $5.4 billion, as it looks to expand its AI and robotics footprint.

🚀 Clean energy investing: While the current U.S. administration has not been kind to the climate tech sector, Brookfield announced a $20 billion energy transition fund, which was 33% bigger than its last fund, as some investors clearly believe that now is a good time to enter the space.

🏡 AI listings: Owners and agents are now using AI to enhance sale and rental listings, which can be misleading to potential renters and buyers. The lesson is to always see a property in person and, if buying, do a thorough inspection.

⌚ Sotheby’s watch auction: A December auction at Sotheby’s will feature a watch collection from Robert Olmsted that includes two Patek Philippes that have never before been seen in public that could both sell for seven figures.

A winery located on Lake Chelan in Central Washington around 4 hours east of Seattle is up for auction, with the bidding closing this Thursday at 7 PM ET. The lot includes three properties - a 4,550 square-foot 3 bed/4 bath luxury residence, the commercial winery and event venue, and a wine production facility. There is also the 18 Brix restaurant and the wine brand, which has operated for two decades. The vineyards produce more than 4,000 cases of wine annually, including award-winning sparkling wine, and the 3,000 square foot wine cave doubles as an event venue. Originally listed for $8.24 million, the property’s bid currently sits at $3 million for the full package, but the elements are also potentially being sold separately.

_{^*Not all pre-IPO companies will go public or be acquired, and not all IPOs or acquisitions are or will become successful investments. Diversification does not assure a profit or protect against market loss. Securities offered through EquityZen Securities LLC, member FINRA/SIPC.}