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Alternative investments stand distinct from the typical stocks, bonds, and cash, offering a unique avenue for institutional and accredited investors. These assets provide an opportunity to diversify, reducing reliance on the stock market's fluctuations. Additionally, real assets within this category can serve as a buffer against the impacts of inflation. It's an approach that emphasizes both variety and security. For the savvy institutional and accredited investor, these assets are a passport to diversification, steering clear of the stock market's turbulence.

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The LB Strategic Income & Growth Fund emphasizes the preservation of capital while targeting consistent, long-term returns. By diversifying across various minimally-correlated alternative asset classes, the fund aims to reduce exposure to single-asset volatility, thereby aiming for steady performance.

Drawing inspiration from the endowment model, the fund strategically allocates assets amongst top-tier alternative investment managers. This approach not only ensures diverse portfolio construction but also positions the fund to tap into both steady income streams and growth opportunities.

Key Points:

  • Objective: Income & Growth.

  • Diversification: Investments spread across minimally-correlated alternative investment asset class managers.

  • Target Return: 8% net of fees. 

  • Asset Allocation: Private Equity, Private Credit, Real Assets. 

  • Outcome: Balanced approach for both steady income and growth potential.

Balancing Rocks

Key Points:

LB Strategic Income & Growth Fund qualifies as a Puerto Rico Private Equity Fund (“FCP-PR”) under Puerto Rico's Act 60. 


Requirements: At least 60% of its capital to be deployed in PR assets or businesses.


Investor Benefits:

  • Eligible deduction of 60% of invested capital againts any PR taxed income (AGI) with a 15-year carry-forward.

  • Flat tax of 10% on distributions of interests and dividends (excempt from AMT).

  • 0% tax on investor capital gainst generated by the fund (excempt from AMT).

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Financial Disclosure

Lyon Bern, LLC is a Registered Investment Adviser and is in the business of consulting and advising its clients in wealth and asset management. Each client’s INVESTMENT STRATEGY will be made individually and based on the client's Investment Policy Statement. Please remember that past performances ARE not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product referred to directly or indirectly in this document will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio. Moreover, you should not assume that any discussion or information contained in this document serves as the receipt of, or as a substitute for, personalized investment advice from Lyon Bern, LLC. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional investment advisor. A copy of our current written investment advisory agreement discussing our advisory services and fees is available for review upon request.

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