As the alternative investment space continues to grow, two Southeast startups, AcreTrader and Gridline, have joined forces to provide investors with increased opportunities in the sector. With a rocky year in stocks and bonds, investors are turning to alternative asset classes to diversify their portfolios. According to a recent report by PwC, alternative asset classes are expected to double in size over the next two years, reaching $21.1 trillion.
AcreTrader, based in Arkansas, and Gridline, based in Georgia, have collaborated to help investors diversify their portfolios by investing in US farms and timberland. This collaboration aims to make these investments more accessible to registered investment advisors, family offices, and individuals.
Gridline, a venture-backed startup, launched in 2020 as a digital wealth platform for alternative investments. Their partnership with AcreTrader marks their first collaboration, but CEO Logan Henderson hinted at more similar partnerships in the future. Henderson expressed that AcreTrader’s exceptional investment performance and shared vision for leveraging technology were key factors in establishing the partnership.
AcreTrader, a venture-backed startup that raised $20 million in a Series B funding round earlier this year, has made early investments that support farms in transitioning to clean energy or organic production, as well as expanding their fields. Founder and CEO Carter Malloy sees this collaboration as a natural step forward for AcreTrader.
Investing in alternative assets has proven to be more stable during market volatility compared to publicly traded stocks and bonds. The lower valuation environment for equities and higher interest rate environment for credit have provided investment opportunities for AcreTrader and their investors. AcreTrader responded to these conditions by launching their Private Credit portfolio.
The collaboration between AcreTrader and Gridline aims to capitalize on the growing interest in alternative investments and provide investors with a broader range of options. By including farmland and timberland as subsectors, these startups offer investment opportunities that have demonstrated low correlation to other asset classes and performed well during periods of high inflation.
The partnership between AcreTrader and Gridline highlights the importance of leveraging technology to streamline the private market investing process. Both startups share a vision of making alternative investments more accessible and approachable for investors. This collaboration is a testament to the growth and potential of the alternative investment space.
As the alternative investment space continues to grow, investors have more opportunities to diversify their portfolios. AcreTrader and Gridline’s collaboration aims to meet the needs of investors seeking alternative assets. With their focus on farmland and timberland, these startups provide investment options with strong performance and low correlation to traditional asset classes.
In conclusion, the partnership between AcreTrader and Gridline represents a significant development in the alternative investment space. By leveraging technology and offering investment opportunities in farmland and timberland, these startups aim to help investors diversify their portfolios and navigate economic uncertainty. As the demand for alternative assets continues to rise, collaborations like this will play a vital role in meeting investor needs and shaping the future of the alternative investment landscape.
