Alternative Investing Report - March 14, 2025

*as of 3/13; Sources: S&P, BTC, FTSE, DJRE, 30YM

A significant portion of the U.S. housing market is now facing major climate risks, whether it be extreme wind, fire, or flooding. An estimated $17 trillion of homes are facing the threat of extreme wind, with New York City, Boston and Houston having the most value at risk. Homes with a major risk of fire are worth more than $9 trillion nationwide, with Los Angeles, Phoenix, and Dallas the most at-risk in that category. Finally, $7 trillion worth of homes are at risk of major flooding, with New York City and Miami heading that list. Overall, the South and the coasts, particularly New York California, Texas, Florida, are facing the most risk, with the Midwest the most insulated from climate risk.

➨ TAKEAWAY: The vast majority of buyers already consider future climate risks when looking for property, and with extreme weather events becoming more common, it will only become a more important factor in the market. Not surprisingly, homes with a higher risk of flood or fire are less likely to sell, and when they do sell, it is more likely to be below the list price. Investors need to factor in climate risks when putting capital into real estate, particularly if the intention is to hold a position long-term.

🏈 O.J. Simpson auction: Goldin Auctions is now selling items from the notorious running back’s personal collection, including a replica Heisman Trophy, a number of photographs, and even items of clothing. Celebrity provenance is usually a bonus when it comes to memorabilia, but it’s hard to say how it will play out in this case.

🪙 Binance receives $2 billion: The Emirati state-owned investment firm MGX is buying a minority stake in the world’s largest cryptocurrency exchange for $2 billion, marking the largest investment ever into a crypto company, and the largest transaction ever paid fully in crypto.

🤖 Unreliable AI search engines: A new study found that AI search engines incorrectly answered more than 60% of questions about news sources, with Grok 3 posting a particularly concerning 94% error rate. The models also frequently cited fabricated or broken links in their answers.

💵 Private credit fundraising: While direct lending funds saw a 41% increase in fundraising in 2024, fundraising for private credit as a whole dropped by almost 20%, as mezzanine, infrastructure, and distressed debt funds all saw sharp declines.

🏢 Multifamily investors looking to buy: More than 80% of multifamily investors are looking to make acquisitions in 2025, with only 2% intending to reduce their portfolios this year.

🎨 Basquiat headlining Christie’s auction: The American artist’s “Sabado por la Noche (Saturday Night)” will be the centerpiece of Christie’s upcoming 20th/21st century evening sale in Hong Kong and is estimated to sell for between $13 million and $16 million.

🏡 Buying demand increases: The recent drop in mortgage rates has led to an increase in mortgage purchase applications, and the Redfin Homebuyer Demand Index hit its highest level of 2025.

🚀 Flock Safety fundraise: The surveillance tech startup raised $275 million at a valuation of $7.5 billion, a significant boost from its $4.8 billion valuation last year.

Monday: 🏡 Mortgage rates fall, 🪙 Crypto summit recap
Tuesday: 📉 Market correction, 🪙 Exchange IPOs
Wednesday: 🏡 Worldwide markets, 🚀 Cybersecurity VC raises
Thursday: 📊 CPI report, 💵 Private credit AUM

Have a great weekend!