AltSpot Insider - The End of Blind Investing - Issue #2

This week, we unpack why IRR isn’t everything—and how AltSpot helps investors cut through noise to access real, risk-adjusted opportunity.

AuthorAuthor

Tyler Lucas & Ryan Billings
April 15, 2025

Good morning 🌤️,

This has been a pivotal week for us here at AltSpot, and we’re excited to share what we’ve been working on. Everyone loves a good IRR—but in private markets, what you don’t see can hurt you. This issue, we’re breaking down why surface-level numbers can deceive—and how we’re helping investors dig deeper.

From The Desk

At AltSpot, we’re not just building a platform—we’re reshaping how private investing works for modern investors.

After years of sitting on the other side of the table—as Managing Directors, Partners, and executives in private equity, private credit, and venture capital—we saw firsthand the advantage institutional investors have. They had the data. The leverage. The legal firepower. Full deal teams and access to structures most investors never even see.

Meanwhile, most individual investors are flying blind.

As private equity has diversified, there’s now a wave of high-yielding opportunities emerging from boutique managers in niche sectors. These deals can build serious long-term wealth—but only if you know how to vet them properly. At the same time, some of the most elite deals and funds in the world have minimums of $10M or more—leaving most investors locked out.

Too often, individual investors rely on surface-level analysis or get sold on a sponsor’s track record from one great deal. But as firms grow, investors can get trapped feeding the machine—doing deals to cover overhead, hit fund deployment targets, or preserve relationships. That’s when selectivity disappears and where clarity diminishes.

At AltSpot, we exist to close that gap. 

Our Mission Is Simple:

Help investors leverage collective capital to access better deals—with more control, better terms, and real transparency. What started as a close circle of friends pooling capital has evolved into a scalable, tech-enabled investment platform containing high-yielding diverse alternative asset classes.

We cut through the legal and financial jargon. We do the leg work and find the best assets or funds to invest capital, break down every deal so you can understand the structure, risks, and upside. Then you choose which deals to invest in—no blind pools, no pressure. It’s your money, your vote, backed by institutional-level analysis and support from deal selection to investor distributions.

AltSpot is a place where investment incentive is fully aligned 🤝 

🤝 DEAL TALK: Why IRR Isn’t The Whole Story

Are You Overvaluing IRR?

Let’s be real—IRR is one of the most misunderstood metrics in private investing.

While it’s helpful, IRR is often misused and overhyped. Here’s why:

  • Assumptions Matter
    IRR is just a forecast. It can be inflated by best-case scenarios: perfect exit timing, cheap debt, strong market tailwinds.
    Anyone can show an 8% CAP multifamily deal, project value-add upside, assume a booming economy, and show an exit at a 5% CAP to pump the IRR. But that’s not investing—that’s a sales pitch.

  • Context Is Everything
    IRR is great for comparing long-term equity deals. But it’s not useful when comparing short-duration debt funds or income-focused vehicles.
    A high-quality debt fund might show a “low” IRR but deliver reliable monthly cash flow with far less volatility. Apples to oranges 🍊 

  • Focus on Real Value
    At AltSpot, we underwrite based on comps, fundamentals, and value we control—like improving operations, signing stronger leases, or making accretive bolt-on acquisitions.
    We want deals that work even if rates don’t drop or if the market flatlines. Any upside from macro tailwinds? That’s icing on the cake.

Investing isn’t about chasing the biggest number—it’s about making smart, risk-adjusted decisions.

🔦 CURRENT SPOTLIGHT: Safe Yield, Real Risk Mitigation

Here are highlights from current opportunities on our platform:

Private Business Credit Fund 💰️ 

  • 18–20% target yield, 12-month lockup

  • Lends to lower-middle-market companies with strong fundamentals

  • Collateral-backed loans (senior debt, UCC-1, PGs or equity pledges)

  • Provides fast, non-dilutive growth capital for PE-backed firms

  • Sector has a long history of low default rates and strong performance

Mezzanine Real Estate Fund 🏢 

  • 10–12% projected return based on tiered investment size

  • Backed by a sponsor with a $200M multifamily portfolio

  • We’ll meet the $1M+ threshold to qualify for the 12% tier as a club

  • Second-position loans, but secured by cash-flowing, stabilized assets

Industrial and Multifamily Real Estate 🏭️ 

  • Focused on fast-growing logistics and Sunbelt corridors

  • We believe industrial is still underpriced, with CAP rates expanded post-rate hikes but unlikely to stay there

  • Demand continues to grow from reshoring and supply chain investment

  • Multifamily is evergreen, but we prioritize best-in-class operators in overlooked secondary markets

Series A Music-Tech & AI Ventures 💿️🤖 

  • Venture opportunity combining IP-backed music catalog businesses with early-stage tech

  • Historically uncorrelated to public markets, with strong exit potential and natural downside protection

  • In diligence now—club members will get early access once finalized

📡 THE PULSE: Key Market Moves

  • Trump’s Tariff Pause: 90-day delay on new tariffs (excluding China) calms markets—temporarily.

  • China Retaliates: Beijing announces fresh tariffs in response, escalating the trade chess match.

  • Consumer Sentiment Drops: Inflation expectations spike, hitting levels not seen since 1981.

  • S&P 500 Rebounds: Markets recover post-announcement, up 2.3% week-over-week.

  • Heartland Expansion: Midwestern and Southeastern CRE markets gain traction on infrastructure spending and reshoring.

🤑 JOIN OUR INVESTMENT CLUB

We’re not a fund. We’re a curated, collaborative investment platform designed for people who want transparency, control, and better outcomes.

As a member, you’ll get:

  • Access to fully underwritten, vetted investment opportunities

  • Freedom to choose which deals you participate in

  • The buying power of a $10M check—even with a $50K investment

🔒️ Accredited investors only.
(Generally $200K+ income [$300K jointly] or $1M+ net worth excluding primary home.)

We’re also working to open select Reg A+ and crowdfunding offerings in the near future.

Ready for More?

You’re reading The Alt Street Journal: Insider Edition.
For deeper breakdowns, early access to vetted deals, and high-level strategy:

This is just the beginning.
More ways to earn are coming—referrals, affiliate rewards, deal incentives, and surprise unlocks.

Fair winds and following seas 🌅

Spread the Love:

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See you next Tuesday.
Clay becomes bricks. Bricks build empires. Let’s get to work.

Cheers,
Ryan & Tyler
The Alt Street Journal Crew

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