n an environment where traditional banking products provide limited yield, a growing number of investors are seeking alternative avenues to deploy capital more efficiently. Alternative investments in the real economy have gained prominence as an attractive solution, offering access to tangible projects with pre-agreed returns, outside the traditional financial system.
But what do these investments actually entail? How are they structured? What time horizons and risk exposures should be considered?
In this article, we set out a clear and practical framework to understand this asset class and to identify the key factors that should be assessed before allocating capital.
What Is an Alternative Investment in the Real Economy?
An alternative investment in the real economy is one that does not take place through traditional financial markets (such as equities, bonds, or collective investment funds), but is instead directed towards financing real economic activity: businesses, property transactions, working capital, growth initiatives, or transition projects.
These transactions are not publicly listed, do not rely on conventional banking intermediation, and are typically structured through private contractual agreements. Fundamentally, they connect investors’ capital directly with genuine financing needs in the economy, bypassing the traditional banking system.
How Does It Work?
An alternative real-economy investment typically follows this structure:
- A defined project: for example, a company seeking to finance working capital or a short-term property transaction.
- One or more private investors: providing capital in exchange for a pre-agreed return.
- A private contractual agreement: setting out terms, duration, and expected return.
- An intermediary or independent advisory firm: responsible for analysing the opportunity, conducting due diligence, and supporting the investor (such as Biventia).
These are not fund structures, but rather direct investments, commonly arranged as private lending transactions or structured participations.
What Time Horizons and Returns Are Typically Offered?
Most of these transactions are structured with short- to medium-term maturities, generally ranging from 3 to 18 months, and offer pre-agreed annual returns in the region of 8% to 12%.
This enables the investor to:
- Know from the outset the expected return
- Avoid exposure to day-to-day market volatility
- Plan liquidity around defined repayment dates
Typical example: a company raises €100,000 for 12 months at a 10% annual return to finance expansion. The investor provides the capital and, at maturity, receives the principal plus agreed interest in accordance with the contract.
How Does It Work?
While potentially attractive, these investments carry specific risks:
- Default risk: if the project underperforms, delays or capital losses may occur.
- Illiquidity risk: capital is committed until maturity.
- Limited regulatory oversight: many transactions do not fall under the supervision of the CNMV or the Bank of Spain.
- Operational or legal risk: particularly if the structure is inadequately designed.
For this reason, it is essential that investors fully understand the underlying project and that advisory support is transparent and professionally executed
What to Review Before Investing: Basic Due Diligence
Before committing capital to an alternative investment, investors should carefully assess:
- Who is behind the project: experience, reputation, and track record.
- Security arrangements: personal guarantees, collateral, or contractual protections.
- Clear commercial terms: return, duration, repayment schedule, and penalties.
- Legal structure: contractual clarity, governing jurisdiction, and tax considerations.
- Diversification: avoiding excessive concentration in a single transaction.
- Professional alignment: advisory support that is genuinely aligned with the investor’s interests.
Conclusion: A Different Way to Generate Returns
Alternative investments in the real economy represent an effective approach to:
- Achieving pre-agreed returns within defined timeframes
- Diversifying beyond the traditional financial system
- Connecting capital with productive, tangible projects
At Biventia, we analyse each transaction with rigour, pursue returns with discipline and purpose, and share the investment rationale transparently with every client — clearly and without hidden clauses.
Returns. Transparency. Shared strategy. That is how we invest alongside you.
Less noise, more structure.
Less anxiety, more strategy.
Want to know more? Want to explore what it would be like to be part of the Biventia team? 👉 You can contact us 👉 Schedule a meeting The next step is up to you. Independence, strategy, and growth… we set them in motion.
