Alternative investment is usually considered as all investments except traditional investment, which mainly includes several types:

Alternative assets: such as natural assets, commodities, real estate, infrastructure, foreign exchange, intellectual property, etc.

Alternative investment strategies: long and short positions, structured products, etc.

Private equity: venture capital, growth investment, merger and acquisition investment, crisis investment and other hedge funds.

A fundamental idea of alternative investment operation is that the market is not necessarily efficient, and the prices of many enterprises and projects do not reflect their intrinsic value, so the farther away from the public trading platform, the higher the deviation between price and value may be. Alternative investment focuses on unlisted enterprises and projects with packaging potential, and reflects the value of the acquired enterprises or projects through purchase, reorganization, packaging and liquidation.

Because it does not operate on an open trading platform, a major feature of alternative investment is the lack of liquidity. A project usually takes several years from subscription to cash, so alternative investment funds generally have a lock-up period of 5, 10 years, and it is difficult to redeem them halfway.