Alternative Investing Report - April 15, 2025

*as of 4/14; Sources: S&P, BTC, FTSE, DJRE, CL50

Volume on pre-IPO trading platform Hiive showed 602 buy orders in March, against 1,407 sell orders. As sellers outnumber buyers, it is expected that the spread between the market value and purchase price of shares will grow from the 15% average discount at the end of 2024. That spread has narrowed in the past few years due to increased activity in the market - secondary funds raised an all-time high of more than $100 billion in 2024.

➨ TAKEAWAY: If public markets remain volatile, it will carry over to private markets, as investors look to exit riskier assets. Secondaries also have become a important way for VC firms to exit their positions and return capital to investors, and some might want to get ahead of a market contraction. As other investors prioritize liquidity over returns, they are more willing to exit positions at a discount to market value, meaning that investors focused on the long-term could benefit from lower prices.

In the newest episode of Smart Humans, Vincent founder Slava Rubin talks with 1-800-FLOWERS.COM Founder and Chairman and Worth Media Group Chairman Jim McCann about diversifying across alternatives, scaling to a public company, and the value of being curious.

Luxury real estate - properties priced at $1 million or more - has been the fastest growing sales segment over the past 21 months, and high-end properties have seen buying demand stay steady. The recent tariff-influenced market struggles could have an outsized influence on the market, though, as wealthy buyers own more stock than average buyers, and it is hard for buyers to commit to major deals with massive uncertainty.

➨ TAKEAWAY: Luxury has been real estate’s most resilient sector as the overall market has slowed in the past few years, due largely to higher interest rates. However, market uncertainty has already caused deals for luxury homes to fall apart, and the deal activity is expected to slow. On the other hand, real estate is seen as a more stable asset, so wealthy investors could potentially allocate more to property than equities if the chaos continues.

📊 Consumer sentiment falling: April’s survey on consumer sentiment showed a 10.9% monthly drop and 34.2% year-over-year decline, marking the second lowest reading in the survey’s 73 year history.

💵 HSBC pursuing private credit: The global banking giant has held talks about potential partnerships with a number of private credit firms but is not planning to create its own private credit division just yet.

🎨 Painting saved from Nazis: The French painter Fernand Léger’s “Jeune fille au bouquet” is expected to fetch $5 million - $7 million at Sotheby’s next month, more than 80 years after a French resistance hero saved it from being looted by the Nazis.

🚀 Founders fund raise: Billionaire Peter Thiel’s VC firm closed Founders Fund Growth III, a $4.6 billion late-stage venture fund which had originally targeted a raise of $3 billion.

🪙 IRS rule overturned: An IRS tax rule that counted decentralized cryptocurrency exchanges as brokers has been nullified, a big win for DeFi and crypto users looking to avoid taxes.

💎 Vivid blue diamond: At 23.24 carats, the Golconda Blue is poised to be the largest Fancy Vivid Blue - the stone’s highest grade - ever sold at auction next month at Christie’s, with an estimated price tag of $35 million - $50 million.

Originally built in 1690, The Summit House, one of the oldest buildings in Jersey City, NJ, is being auctioned off next month. The vacant 3-story, 6,800 square foot commercial building is located near the Journal Square PATH stop, a hub for commuters heading into New York City. It was used as a house until the late 19th century before being converted into a retail building, and was most recently a restaurant. Bidding opens on May 5, and starts at $350,000.