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Alternative Investments in Australia: Private Equity, Real Estate and Beyond

As market volatility and inflation continue to challenge traditional portfolios, more high-net-worth investors in Australia are exploring alternative investments to diversify risk and enhance long-term returns.


From private equity and real estate to infrastructure, venture capital, and collectibles, alternative assets are no longer niche, they're essential tools in building a resilient and future-focused portfolio.


What Are Alternative Investments?

Alternative investments refer to asset classes outside of traditional stocks, bonds, and cash. These typically include:

  • Private Equity and Venture Capital

  • Commercial and Residential Real Estate

  • Infrastructure Projects

  • Private Credit

  • Agriculture and Farmland

  • Collectibles (art, wine, luxury watches)


For high-net-worth individuals, these assets offer potential for higher returns, reduced correlation to public markets and exclusive access to private opportunities.


page with a heading of 'investment' showing charts with a calculator used on a blog about alternative investments

Private Equity: Accessing Growth Before IPO

Private equity involves investing in private companies - often through managed funds or direct deals. These investments typically come with higher entry points but offer exposure to early-stage or high-growth businesses before they reach public markets.


Key Benefits:

  • Long-term capital growth

  • Low correlation with equity markets

  • Access to innovation and disruption


Key Considerations:

  • Illiquidity (long lock-in periods)

  • Higher risk and complexity

  • Requires careful due diligence and expert selection


Real Estate: Tangible, Income-Producing Assets

Real estate has long been a cornerstone of Australian wealth portfolios. From commercial property syndicates to build-to-rent developments and high-end residential, property provides a physical hedge against inflation and often consistent income streams.


Emerging Trends:

  • Industrial/logistics facilities (due to e-commerce growth)

  • Sustainable and ESG-compliant property

  • Regional residential developments


Beyond the Traditional: Alternatives Investments Gaining Traction

As portfolio construction evolves, savvy investors are turning to less conventional alternatives:

  • Infrastructure: Toll roads, renewable energy projects, and utilities with long-term contracts and inflation-linked returns

  • Private Credit: Lending to mid-market businesses in a rising interest rate environment

  • Collectibles: Art, rare wines, or luxury cars offer non-correlated diversification, but require specialist knowledge

  • Agribusiness: Farmland and water rights are gaining interest for their yield and ESG appeal


Who Should Consider Alternative Investments?

These opportunities are best suited for sophisticated investors or those with high-net-worth portfolios seeking:

  • Portfolio diversification

  • Enhanced yield or growth potential

  • Access to exclusive or off-market opportunities

  • Long-term wealth preservation


Risks and Considerations

While the return potential is attractive, alternative investments are not without risk:

  • Lower liquidity

  • Longer investment horizons

  • Regulatory and structural complexity

  • Higher entry thresholds and due diligence requirements


Engaging with a financial adviser experienced in alternative assets is essential for aligning opportunities with your broader wealth strategy, estate planning, and tax outcomes.


If you're ready to explore alternative investments and whether they fit your financial goals, contact our team for a confidential consultation.



Disclaimer: This article is for general information purposes only and does not constitute personal financial advice. You should seek professional advice tailored to your circumstances before making any financial decisions.

Scion Private Wealth is a Brisbane financial planner and private wealth adviser with expertise in investment management, retirement financial planning, tax optimisation strategies and intergenerational wealth transfer

Contact Details

1/200 Mary Street, Brisbane, Qld 4000

Scion Private Wealth Pty Ltd ABN 57 683 148 816 is a Corporate Authorised Representative, No. 1314101 of Alliance Wealth Licensee ABN 93 161 647 007 AFSL 449221

This information is general advice. We have not considered your objectives, personal or financial circumstances. You should consider the appropriateness of the advice for your circumstances before making any decision. (If applicable) You should obtain and consider the relevant Product Disclosure Statement and seek the assistance of an authorised financial adviser before making any decision regarding any products or strategies mentioned in this communication. This website holds information for Australian residents only.

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