Are you missing out on the investment opportunities that institutional investors have been using for decades to build wealth?
In this episode, Gary sits down with Kim Flynn, President of XA Investments and CFA charter holder, to explore the world of alternative investments and how they're becoming accessible to individual investors and business owners. Kim shares her journey from investment banking to founding her own business and reveals how interval funds are democratizing access to private markets.
Kim Flynn discusses her entrepreneurial journey in asset management and explains how alternative investments—everything that's not a stock or bond—can provide diversification, income, and inflation protection. She breaks down the revolutionary concept of interval funds, which offer SEC-registered access to private market investments with improved liquidity and tax reporting compared to traditional private funds. The conversation covers direct lending opportunities, the importance of working with knowledgeable financial advisors, and why small business owners are particularly well-positioned to benefit from these sophisticated investment strategies.
Key Takeaways:
➤ Alternative investments include anything beyond stocks and bonds - from private equity and real estate to infrastructure and farmland, offering diversification benefits and potential inflation protection that traditional portfolios may lack.
➤ Interval funds are game-changers for individual investors - these SEC-registered products provide access to institutional-quality investments with quarterly liquidity windows, 1099 tax forms instead of K-1s, and lower suitability requirements.
➤ Direct lending presents compelling opportunities in 2025 - with banks pulling back from lending, direct lending funds are filling the gap and offering yields of 9-11% while providing alternative financing options for business owners.
➤ Small business owners have natural advantages in alternative investing - they understand diversification risks better than most investors and can benefit from longer investment horizons to access institutional-quality strategies previously unavailable to individual investors.
➤ The right financial advisor is crucial for alternative investment success - investors should ask advisors about private market exposure and alternative offerings, as not all advisors understand interval funds and their unique liquidity structures.
Notable Quotes:
"We've got to be thoughtful about what we bring to market. The world doesn't need another large cap ETF, so we focus on creating cutting-edge products in alternative investments."
"This is what the American business owner needs - an opportunity to deploy capital in a more sophisticated way alongside institutional investors, but have it be convenient with easy buying and selling and a 1099 instead of a K-1."
Connect with Kim Flynn:
Website: https://xainvestments.com/
LinkedIn: Kimberly Flynn at XA Investments
Resources: Educational content, white papers, and interval fund index information available on website
Kim Flynn is the President of XA Investments, where she leads product and business development specializing in closed-end funds, interval funds, and alternative investments. As a CFA charter holder with deep expertise in private market investing, she's passionate about making institutional-quality investments accessible to a broader audience.
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