Alternative Investing Report - September 24, 2024

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_{*as of 9/23}

The Fed’s rate cut last week, and the prospect of future rate cuts, are of particular importance to the commercial real estate market, as it directly impacts adjustable-rate mortgages and opens the door to more affordable mortgage originations and refinancing options. However, the effects on the market may not be as quick as some investors and property owners would hope, as it has recently taken between 1.5 and 3.5 years for activity to increase after a rate cut.

➨ TAKEAWAY: The rate cut is a step in the right direction, but 0.5% is not substantial enough to solve all of the industry’s woes. With the amount of outstanding CRE debt still increasing, and trillions of dollars of debt set to mature in the next year, more rate cuts are needed before a full turnaround can be expected.

During a New York fundraiser over the weekend, Vice President Harris said that she will support crypto and AI companies, calling them “innovative technologies.” This is the first public statement she has made about crypto, and it comes after her opponent, former President Trump, has attempted to label himself as the “crypto candidate,” and launched a crypto platform with his sons.

➨ TAKEAWAY: With Harris coming out as pro-crypto, it now seems like the industry will benefit no matter the result of the election. A report from asset manager VanEck suggested that Harris would be the better candidate for Bitcoin, but Trump would be more beneficial for the crypto market as a whole. The debate over this will be one of the topics discussed during our upcoming virtual event with Anthony Scaramucci and Slava Rubin.

With the election fast approaching, market watchers are bracing for impact. On September 30 at 1 PM ET, join SkyBridge Capital’s Anthony Scaramucci and Vincent co-founder Slava Rubin as they discuss the upcoming election and what you need to know as an investor. You won’t want to miss it!

🏡 Popular renter perks: The top amenities renters are looking for are off-street parking, in-unit laundry, and pet areas, topping traditional luxury offerings such as pools and fitness centers.

💵 Apollo’s new partnership: The asset manager is teaming up with BNP Paribas to expand its private credit business, with the French bank committing to $5 billion of new funding.

🎨 Christie’s fall highlights: Paintings by Joan Mitchell, Ed Ruscha, Gerhard Richter and Lucian Freud lead the way in Christie’s October auctions in New York, London and Paris.

🚀 VC expertise: Startups whose lead investor has expertise in their industry are 1.2x more likely to have a successful exit than those where the lead investor is a generalist VC.

🪙 Crypto correlation: The crypto market’s rise in the wake of the Fed cut underscores its growing correlation to the equities market, as macro variables now seem to be driving crypto’s price action.

📺 ”Friends” auction: Many of the 110 pieces of memorabilia sold in the auction commemorating the 30th anniversary of the TV show exceeded pre-sale estimates, including a replica of the iconic orange couch, which sold for $29,250, well above the $2,000 estimate.

This newly built Park City, UT estate features a high-tech private gondola to take its residents directly to the slopes, but that’s just one of many amenities. The 21,378 square foot, 7 bedroom, 16 bathroom home sits on 2.6 acres and also features an infinity pool with a mountain view, an indoor basketball court, bowling alley, steam room and sauna, and climbing wall. It costs a pretty penny though - the listing price of $65 million would almost double the existing record house sale for the state.