Alternative Investing Report - March 12, 2025

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*as of 3/11; Sources: S&P, BTC, FTSE, DJRE, GOLD

Worldwide, luxury real estate prices grew 3.6% in 2024, according to the just released Knight Frank Wealth Report. Seoul saw the highest yearly appreciation, with an annual gain of 18.4%, followed by Manila and Dubai. The Middle East was the top performing region, averaging a 7.2% annual gain, compared to just 2.5% for Europe and 2.4% for North America. The report projects that the Middle East will see prices increase by 64% over the next five years.

➨ TAKEAWAY: While luxury real estate in the U.S. outperformed the rest of the real estate market, it lagged behind the rest of the world due to higher interest rates and the economic uncertainty of an election year. The report also suggests that nearly half of family offices are targeting additional real estate acquisitions in 2025, with international market prices expected to continue rising. American investors in a position to consider international markets could find better returns than in their domestic counterparts.

In the newest episode of Smart Humans, Vincent founder Slava Rubin talks with UpMarket's Grace Chen about the current state of the economy, the hottest sectors in pre-IPO investing, and why down markets create buying opportunities.

The cybersecurity startup Chainguard is raising a $350 million funding round at a valuation of $3.5 billion, more than tripling its value from a $1.1 billion valuation in July. Meanwhile, fellow cybersecurity startup Cybereason secured a $120 million funding round, primarily from SoftBank, in the aftermath of a 90% reduction in valuation, a failed merger and its CEO stepping down.

➨ TAKEAWAY: The cybersecurity sector has been one of the hottest in the startup world, and a struggling company such as Cybereason attracting a large funding round is a bullish sign. Overall, funding to the sector increased 43% in 2024, though the total deal count fell by 22%, meaning more mature startups are commanding the bulk of the dollars. The IPO pipeline for cybersecurity startups is also promising, with big names like Snyk and Wiz possible candidates to go public this year.

🏢 Blackstone’s CRE debt fund: The alternative asset giant raised a record-tying $8 billion commercial real estate debt fund to lend to distressed property owners struggling to refinance with traditional lenders. The size of the fund is bullish for the commercial market, which has struggled the past few years.

🚀 Hinge Health IPO: The digital physical therapy startup, last valued at $6.2 billion in 2021, filed to go public on the New York Stock Exchange, and reportedly looking to raise $500 million. Its revenue increased by 33% in 2024 and investor response to the IPO, which could come as soon as April, will be instructive for other healthtech startups.

🏡 Rocket Mortgage to buy Redfin: The 2nd biggest mortgage lender in the country is acquiring the real estate listing platform for $1.75 billion, with the hopes of streamlining the homebuying process and expanding its lending business.

🚘 $6 million “Yellowbird” sale: One of only 29 German-built 1989 RUF CTR “Yellowbird” cars ever made sold for a record-breaking $6 million at Gooding & Company’s Amelia Island Auction.

🪙 SEC delays ETF approval: Potential Solana, Ripple, Litecoin and Dogecoin ETFs have been put on further hold by the SEC, with decisions now pushed back until at least May and final deadlines in October.

💵 Private equity targeting retirement plans: Private equity assets make up less than 1% of all retirement assets in defined contribution plans such as 401(k)s, and PE firms are creating new products in the hopes of attracting more.

What a difference a week can make. We looked at Cardano last week - and said not to be surprised if its price fell - after it was the biggest gainer in the top-100 tokens by market cap. This week, it had the biggest decline of any major cryptocurrency. Before a slight movement upwards yesterday, Cardano had given back all the gains it made after the announcement that it could be a part of the strategic national crypto reserve. Since then, it has come to light that the government will not be purchasing any additional digital assets, and that Cardano would be relegated to a secondary reserve. It is not surprising that its price has fallen in response, and without a clear short-term catalyst, it may continue to underperform the crypto market as a whole.