Getting access to good alternative investment deals may come down to who you know, and Fred Hubler makes the case that a strong network functions like real estate’s “location, location, location” for wealth building. He argues that being around people who are already investing in these deals helps others get exposed to the same opportunities, benefiting everyone in the circle.
To illustrate the point, Hubler cites a story reported by Entrepreneur writer Alp Mimaroglu: marketing platform Eloqua was sold to Oracle for $871 million in 2012, a deal that closed smoothly because co-owner Paul Teshima had strong existing relationships with people at Oracle, resulting in a sale price of over 200% of Eloqua’s estimated public market value, adding more than $400 million to shareholder net worth.
Hubler also notes that quality alternative investments tend to have limited capacity, citing that most DSTs raise only $25-150 million in equity, which large firms could match almost instantly, meaning good deals don’t stay available long, making network access essential if investors want real choice.
In this world, networking isn’t just a soft skill – it’s often the deciding factor in whether you get access to a deal at all.
Find Hubler’s full piece over on Forbes, The Secret Weapon Of High-Net-Worth Individuals Is Their Network.