Now vs. then: Platform gives investors liquidity options that didn’t exist in 2007
Overland Park, Kan., Nov. 21, 2022 — Inflation is surging, the supply chain is lagging, the stock market is seeing wild fluctuations and many economists believe 2023 will bring a recession.
In all this unwelcome economic news, though, there’s a bright spot for investors. If there’s a recession next year, investors will have access to liquidity that wasn’t available in 2007, the last time the U.S. economy faced this situation.
“Many investors couldn’t make moves in 2007 because they didn’t have the liquidity to act,” said Brian King, Realto co-founder and CEO. “But the private markets have evolved in the last 15 years. Today’s investors have options for liquidity in alternative investments, such as private real estate, that weren’t available in the past. It’s a classic ‘now vs. then’ scenario.”
Realto is the first platform for buyers and sellers to trade alternative and real estate investments. The tool operates like an exchange where unlisted real estate securities can be bought and sold similar to how the stock of a public company trades.
Investor appetite continues to grow for alternative sources of liquidity. Fundraising for unlisted real estate investments hit $36.5 billion in 2021, more than triple the 2020 amount. In the last year, Realto has added more than 40 products to its platform and hundreds of millions in buy-side interest.
“Whether the economy is in an upturn or downturn, investors no longer have to wait it out or struggle to find liquidity,” said King. “Realto matches buyers and sellers of alternative and private real estate investments, and unlocks previously hard-to-find liquidity.”