Potential Alternative Investement / Secondary Market Advice

Seeking input/advice...I’m coming from a non-traditional background (nonprofit finance / planned giving), but I’ve been working on a niche alternative asset idea that sits at the intersection of trusts, tax, and structured cash flows.

Charitable Remainder Trusts (CRTs) are common in estate planning. There are tens of thousands of active CRTs, typically holding diversified portfolios and paying a fixed percentage income stream to a beneficiary for life or a term of years, with the remainder going to charity. Based on some research I've conducted as well as what I've heard anecdotally there could be well over $150B held in these trusts nationwide. 

What’s striking is how illiquid the income interest is for beneficiaries, even when the trust assets and payout stream are relatively predictable. Conceptually, the income interest looks like a small, weird structured credit instrument: defined cash flows, actuarial duration, and significant tax complexity that likely limits the buyer pool.

There's basically one firm out there that specializes in this service as part of their general white glove UHNWI wealth management business. But it still seems extremely under-institutionalized relative to the apparent size of the market. 

I've written a white paper on the potential addressable market (could be up to $9B) and have pitched the idea to some wealth management shops but don't have a clear idea of where to go from here or who to connect with -- I'd really love to build this service internally somewhere or try and connect with potential investors who would be interested in an niche opportunity like this. 

If you have any experience with:

  • Trust & estates or fiduciary groups at banks
  • Alternative credit / structured products desks
  • Family offices or RIAs who’ve evaluated non-standard cash-flow assets

I'd genuinely love to connect and compare notes. Even directional feedback is helpful. Feel free to PM...

Not selling anything, I've just stumbled upon a real opportunity but am unsure of how to make the connections needed to capitalize. 

TIA Monkes 

1 Comments
 

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