Alternative Investing Report - February 7, 2025

*as of 2/6; Sources: S&P, BTC, FTSE, DJRE, 30YM

When looking at transaction volumes, vacancy rates, and cap rates, it appears that the commercial real estate market is on the brink of a recovery, with values on track to stabilize by the end of this year. The typical cycle sees the market recover after vacancy rates start to drop and rent growth picks up, both of which are happening. Prices increased in December, with industrial real estate leading the way, and office properties still losing value, and commercial properties performed better in larger markets than they did overall.

➨ TAKEAWAY: The rate of property value declines in commercial sectors started to slow in 2024, which is promising for 2025, as it seems like the market has hit its bottom. However, higher interest rates, continuing inflation and uncertainty over Trump’s policies could throw a wrench in the recovery. Investors should continue to monitor metrics like vacancy rates and rent growth across sectors and look to invest before the market recovery begins.

Monday February 10 at 12 PM ET - join a briefing covering Elon Musk’s neurotechnology company Neuralink. Vincent’s Slava Rubin and Sacra’s Jan-Erik Asplund will discuss the company’s growth, strengths, challenges, IPO prospects, and much more. Presented by Upmarket.

As a consequence of accepting a $1.4 billion loan from The International Monetary Fund (IMF), El Salvador had to change some of its laws involving Bitcoin. While it can still be used if a business accepts it, Bitcoin is no longer considered “currency,” so its adoption is no longer mandatory. Previously, businesses had to accept Bitcoin. El Salvador will also no longer accept Bitcoin as a form of payment for taxes.

➨ TAKEAWAY: In 2021, El Salvador became the first country in the world to make Bitcoin an official currency, with crypto bulls hailing it as the start of a trend. However, in the past four years, only 12% of the population has used Bitcoin and President Nayib Bukele, a noted crypto enthusiast, said it was his government’s most unpopular measure. El Salvador is still acquiring Bitcoin as part of its national reserve, and Bukele remains pro-crypto. With its transaction fees and fluctuating value, Bitcoin has always worked better as a store of value than as a currency, so El Salvador’s move is not surprising, and should not have much of an impact on the crypto markets.

🚀 Hamilton Lane raises first VC fund: The alternative asset manager with nearly $1 trillion in AUM raised $615 million for its first dedicated venture fund, of which it will deploy half into a fund of funds strategy, and the bulk of the rest into secondaries.

🏡 Lock-in effect easing: As of the end of Q3 2024, 17.2% of U.S. homeowners have mortgage rates above 6%, up from 12.3% a year earlier. As that number continues to grow, fewer homeowners will be holding onto houses simply because they have a lower mortgage rate than they can get on a new house - meaning the so-called “lock-in effect” will slowly become less relevant.

🪙 Tiger21 holdings: Members of the high-net-worth investor network Tiger21 holds around $6 billion worth of crypto among their $200 billion in assets, which shows both that the ultra-wealthy are adopting digital assets, and gives a sensible allocation for others to follow.

🤖 ElevenLabs raise: In a round co-led by a16z, the AI audio startup raised $180 million at a $3.3 billion valuation, tripling its valuation from a year ago.

⌚ Major Breguet auction is coming: This fall, Sotheby’s is holding the largest auction in three decades of Abraham-Louis Breguet watches. Among other things, Breguet is the watchmaker known for inventing the tourbillon and the automatic winding system.

💵 Ares’ big fundraising year: Ares Management raised $92.7 billion in new capital in 2024, a 25% year-over-year increase, as investor demand for private credit assets continues to grow.

Monday: 📊 Trump’s tariffs, 🪙 Crypto crash
Tuesday: 🚀 Potential 2025 IPOs, 📊 Tariff update
Wednesday: 🏢 Office conversions, 🎨 Repeat sales
Thursday: 🏡 Climate change concerns, 🪙 Crypto task force

Have a great weekend!

Advertiser’s Disclosures

This is a paid advertisement for Mode Mobile Reg A offering. Please read the offering statement at https://invest.modemobile.com

¹ Mode Mobile recently received their ticker reservation with Nasdaq ($MODE), indicating an intent to IPO in the next 24 months. An intent to IPO is no guarantee that an actual IPO will occur.

² The rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period.

³ A minimum investment of $1,950 is required to receive bonus shares. 100% bonus shares are offered on investments of $9,950+.

Past performance is no guarantee of future results. Start-up investments are speculative and involve a high degree of risk. Those investors who cannot afford to lose their entire investment should not invest in start-ups. Companies seeking startup investment tend to be in earlier stages of development and their business model, products and services may not yet be fully developed, operational or tested in the public marketplace. There is no guarantee that the stated valuation and other terms are accurate or in agreement with the market or industry valuations. Further, investors may receive illiquid and/or restricted stock that may be subject to holding period requirements and/or liquidity concerns.

DealMaker Securities LLC, a registered broker-dealer, and member of FINRA | SIPC, located at 105 Maxess Road, Suite 124, Melville, NY 11747, is the Intermediary for this offering and is not an affiliate of or connected with the Issuer. Please check our background on FINRA's BrokerCheck.