Why should I invest in alternatives?
Adding alternative investments to your investment portfolio can be a critical component of trying to achieve greater diversification and long term returns, compared to a traditional investment approach focused just on stocks and bonds.
Check out our CIO, Itay Vinik, on Nasdaq, sharing his thoughts on why more investors have turned to alternative investments.
Why should I trust Equi?
- We're a registered investment advisor, all Equi funds are fully audited by RSM (a top 5 US audit firm), and all performance reporting is done by NAV Consulting, a top-10 fund administrator.
- Also, our skin is in the game. The majority of our co-founders' personal capital (over 70%) is invested on our platform alongside their parents, friends, colleagues, and customers.
- We have an experienced leadership team focused on compliance, investment due diligence, and risk management.
- Many family offices, founders, executives trust Equi with their capital. (Read about one of our LP's experiences in this Fortune article)
You should refer to the PPM and ensure you understand all the risks involved and are comfortable with them prior to making any investment.
Do I need to be an accredited investor to invest in Equi funds?
Yes, at this time, we can only accept funds from accredited investors who meet the requirements as defined by the SEC.
- Net worth over $1 million, excluding primary residence (individually or with spouse or partner)
- Income over $200,000 (individually) or $300,000 (with spouse or partner) in each of the prior two years, and reasonably expects the same for the current year
- Investment professionals in good standing holding the general securities representative license (Series 7), the investment adviser representative license (Series 65), or the private securities offerings representative license (Series 82)
- Directors, executive officers, or general partners (GP) of the company selling the securities (or of a GP of that company)
- Any “family client” of a “family office” that qualifies as an accredited investor
What is the minimum amount of capital that I can invest?
What is the selection criteria for your underlying managers?
Criteria may change slightly over time. We use quantitative screening combined with qualitative due diligence to narrow 12,000+ managers to the top ~0.1%. We generally target managers with the following characteristics:
- 8+ year track record;
- Greater than 10% annualized returns*
- Less than 15% annualized volatility
- Less than 0.5 correlation to the S&P 500
*Historical performance (2010 to 2021) of the underlying investments in the Multi-Strategy Fund, net of all fees.
Can you share names of underlying fund managers?
We aim to be as transparent as possible, while protecting the hard work our team has done in sourcing fantastic investments for our platform. Some fund managers are revealed within the app, while others are only revealed to customers.
Are the performance figures gross or net?
Can you provide a complete breakdown of underlying fees?
We've successfully negotiated fee discounts with 70%+ of the underlying managers, our goal is to provide a blended rate that is equal to or lower than going direct or the typical 2 and 20 fee structure.
Performance record in the Equi app displays the performance net of all fees. The fee structure is based on equal weight and doesn't take into account the optimization work that is done on the portfolio.
How is your carry/performance fee calculated?
What are the steps to becoming an Equi investor?
- Fill out an investor application form here
- Verify your identity and accreditation status
- When you’re approved to wire funds, you’ll receive a notification
- Select the desired investment strategy
- Confirm your bank account details with Plaid, or manually add them if you’re using a bank that isn’t supported by Plaid.
- If you are using funds in a bank account supported by Plaid, this will allow you to transfer funds via ACH.
- If you are using funds in a bank account not supported by Plaid, or do not wish to use ACH, these bank account details will be used by us to match against incoming wire transfers.
- Select desired investment(s)
- Once you've selected your investment(s) you will need to sign legal documents
- After signing legal docs, you will be able to view wire instructions to deposit capital
Our Investor Relations team will also reach out to you to schedule an onboarding call if you’d prefer to wait for in-person step-by-step instructions.
How do I transfer funds to Equi?
We accept fund transfers by wire and ACH (from Plaid-supported bank accounts). After onboarding via our web app, verifying your identity, and confirming you're qualified for the chosen investment, you'll sign subscription documents and receive individualized wire instructions. Once you have invested, you'll be able to monitor your investment directly within our app from your investor dashboard.