Three points you will get to know in this article:
- Altitude Club curates top fixed-income investments, like Prism, with an 18% coupon rate.
- It expands investor base, introducing new debt instruments, post-COVID.
- Altitude redefines alternative investments, crafting portfolios for alpha returns
Increasing numbers of Indians are exploring alternative financial instruments that promise higher returns on their investments. In the recent month, India witnessed a remarkable surge in new Demat account registrations, setting a record at 42 lakh, with the overall count reaching 13.93 crore.
Altitude Club, headquartered in Gurugram, is on a mission to establish what they describe as a “mutual fund for alternative assets.” These investment tools are envisioned to be non-volatile, providing both high yields and liquidity. The company is optimistic about the projections indicating that the Global Alternatives AUM will escalate to $23.21 trillion by 2026, a substantial increase from the estimated $13.32 trillion in 2021.
We engaged in a conversation with Krishna Maggo, the founder and CEO of Altitude Club, to gain deeper insights into the platform’s functionality and its overarching goals. The following excerpts have been edited for clarity and conciseness.
Altitude excels in the art of curating top-performing fixed-income investment offerings, setting itself apart from platforms that merely peddle run-of-the-mill bonds and financial arrangements. Our mission springs from the awareness that prevailing market platforms tend to present strikingly similar financial products. In our quest for innovation, Altitude has immersed itself in the heart of the market, ingeniously assembling collections of alternative assets, such as mutual funds, to deliver dependable and secure returns.
Introduction of Prism – A Versatile Securitized Debt Tool
Introducing Prism, our debut offering, a versatile securitized debt tool that functions akin to a bond. Prism brings together a diverse array of 12 alternative assets, such as farmland, real estate, NCD, OCD, invoice discounting, and inventory finance. Soon to be listed on the Bombay Stock Exchange, it boasts an attractive 18% coupon rate, positioning itself as a compelling investment opportunity. Supported by renowned brands generating revenues exceeding Rs 300 crore, Prism’s assets find security in tangible resources like real estate and machinery.
Initially geared towards High Net Worth Individuals (HNI) and Ultra High Net Worth Individuals, Altitude is broadening its horizons to encompass retail investors. Prism is gearing up for a public investment launch shortly.
Furthermore, Altitude has unveiled Sustain X, a structured debt prospect with a focus on sustainable brands in the EV, solar, and renewable energy sector, featuring a Rs 20 crore issue size. Altitude’s ambitious plan involves introducing a fresh Structured Debt Instrument every week.
In the wake of the post-COVID era, conventional investments have proven less effective in delivering optimal returns. This shift has been underscored in a recent wealth report by KKR. At Altitude, we recognize the shortcomings of relying solely on public debt and equities. Therefore, we present a viable solution through alternative assets, ensuring a well-rounded and diversified portfolio.
Redefining Alternative Investments through Personalized Portfolios
Despite the Nifty index boasting an average return of 12-13% and corporate bond rates ranging from 8-10%, retail investors often find themselves constrained by a 13% return cap, resulting in an 8-9% post-tax yield. Altitude steps in to bridge this gap, offering consistent alpha returns through products backed by collateral. We understand that the hesitation to embrace alternative assets on a larger scale stems from perceived instability and security concerns. Addressing this, Altitude’s dedicated risk analysis and underwriting team provides reassurance.
As the landscape of alternative investments continues to expand, Altitude sets out to redefine it. Our approach involves crafting customized portfolios, distinct from commonplace P2P lending products. We tailor our offerings to individual needs, ensuring alpha returns that rival those of High Net Worth Individuals (HNIs) and Ultra High Net Worth Individuals (UHNIs).
Altitude Club, based in Gurugram, is pioneering the concept of a “mutual fund for alternative assets,” capitalizing on the growing interest in higher-yield investments among Indian individuals. Their flagship product, Prism, is a securitized debt tool featuring 12 diverse alternative assets and an 18% coupon rate. Additionally, the company is broadening its investor base to include retail investors, with initiatives like Sustain X, focusing on sustainable brands in the EV and renewable energy sectors. Altitude Club aims to bridge the gap in returns by offering consistent alpha returns through collateral-backed products, exemplifying a commitment to redefining and customizing the landscape of alternative investments.
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