Leo Zhou, Managing Partner at American Fundstars Financial Group, joined Julie Cooling, Founder and CEO of RIA Channel, at the CAIS Alternative Investment Summit to discuss how the firm’s client base views alternative investments.
American Fundstars Financial Group is an RIA that started in 2021 and has grown to $125 million in AUM. The firm has a unique client base, as most clients live in the United States but immigrated from emerging markets. Approximately 85% of the advisor’s clients are qualified purchasers who often have a higher risk tolerance.
Zhou believes in the potential of alternative investments, with an allocation of approximately 80% of client assets invested in non-public markets. Investors seek out alternative investments for lower volatility and lower correlation to public markets. Alternative investments, such as private equity and venture capital offer broader investment opportunities, as the US market has 25,000 private companies compared to just over 3,000 publicly listed companies.
Zhou enjoys working with CAIS, which provides access to alternative investment managers and a technology platform that makes life easier for the advisor.
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