#432: Michael Weisz on Investing in Alternative Assets
11/18/2020 · 68 min · transcript via mlx
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Key topics
— Michael Weisz's entrepreneurial background spans real estate, specialty finance, and legal finance before co-founding YieldStreet in 2016 to democratize alternative asset access.
— Alternative assets are shifting from institutional-only investments to mainstream portfolios as retail investors seek yield in a low-rate environment and diversification beyond stocks and bonds.
— Regulatory hurdles like accredited investor requirements create barriers to retail participation, though recent changes (December 8 accredited investor definition expansion, Reg A+, general solicitation allowance) show progress.
— YieldStreet's competitive edge combines rigorous asset quality oversight with robust technology, positioning it as a category creator in digitally native wealth management.
— The platform focuses on lower-correlation, income-generating opportunities—credit, structured products, distressed assets—avoiding speculative bets like cryptocurrency or collectibles.
— COVID-19 forced introspection on priorities and authentic living; both Weisz and Pompliano emphasize personal responsibility, relationships, and mortality awareness as drivers of clarity and resilience.
Market & price signals
— Weisz noted that compressed yields and low interest rates are forcing institutional investors (endowments, hedge funds) to seek 5%+ returns outside traditional bonds and treasuries, driving 20–30% portfolio allocation to alternatives. Retail lags this shift by years. Aviation industry dropped 92% in activity during COVID, creating distressed opportunities. Valuations and cap structures are shifting in sectors like hotels and transportation as recovery dynamics unfold. No specific Bitcoin or cryptocurrency price discussion.
Actionable insights
— Retail investors typically access alternatives 20+ years later than institutions; diversifying into curated alternative credit and income strategies earlier compounds wealth significantly, particularly starting in your 40s rather than at 65+.
— Seek asset classes with proven track records, downside protection, and collateral backing (e.g., secured private credit) rather than chasing speculative trends; "never invest with someone because they can make you money—focus on how they bring money back home."
Episode sponsorships
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