Alternative Investments in Australia: Private Equity, Real Estate and Beyond
- Jaxon King
- Jul 4
- 2 min read
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.

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.