Alternative investments are assets outside publicly traded stocks, bonds and cash: private equity, private debt, real estate crowdfunding, farmland, art and collectibles, hedge funds, commodities and crypto. This page covers the private and hard-to-trade alternatives, who can buy them in Canada, what they cost and the risks. Crypto has its own guides on the crypto and alternative investments hub, gold is covered in how to invest in gold, and lending money directly to borrowers is covered in peer-to-peer lending in Canada.
Types of Alternative Investments Available in Canada
| Alternative | Accredited investor required? | Liquidity | Typical fee structure |
|---|---|---|---|
| Real estate crowdfunding | Sometimes | Low (money is tied up until the project ends) | Platform and management fees |
| Private equity | Usually | Very low (funds typically run for years) | Management fee plus a share of profits |
| Farmland | Sometimes | Very low | Management fees |
| Art / collectibles | Depends on the platform | Low | Platform fees, sometimes a share of profits |
| Cryptocurrency | No | High (trades around the clock) | Trading fees and spreads, or an ETF’s MER |
| Hedge funds | Usually | Low (periodic redemptions, with notice) | Management fee plus a performance fee |
| Private debt | Sometimes | Low (fixed loan terms) | Management fees |
| Private REITs | Sometimes | Low (limited redemptions) | Management fees |
Real Estate Crowdfunding in Canada
Platforms
Real estate crowdfunding platforms pool investors’ money into individual property projects or funds. Examples that were taking investors in September 2026:
| Platform | Minimum (from its own site) | Focus |
|---|---|---|
| NexusCrowd | $10,000 | Professionally managed real estate deals |
| BuyProperly | $500 | Fractional real estate and other alternatives |
| FrontFundr | Set by each offering | Equity crowdfunding for private companies (registered as an exempt market dealer) |
Minimums, fees and eligibility differ by offering; check the offering document and whether the platform is registered with your provincial securities regulator before investing.
Real Estate Crowdfunding vs REITs
| Factor | Crowdfunding | REIT ETF (XRE) |
|---|---|---|
| Liquidity | ❌ Tied up until the project ends | ✅ Sell on the TSX during market hours |
| Minimum investment | Set by the platform or offering | The price of one unit |
| Transparency | Offering document and periodic reports | Public filings |
| Diversification | Usually one project per investment | 14 REITs, each owning many properties |
| Regulation | Sold under prospectus exemptions, with less disclosure | Prospectus-qualified fund |
| Fees | Platform and management fees, sometimes performance fees | 0.60% (XRE MER) |
| Appropriate for | Experienced, higher net worth | All investors |
Private Equity for Canadians
| Feature | Detail |
|---|---|
| What it is | Investing in private companies not listed on stock exchanges |
| Minimum | Usually high, set by each fund |
| Lockup period | Typically several years, with little or no access to your money |
| Fee structure | A management fee plus a share of profits (a performance fee) |
| Access in Canada | Through exempt market dealers, private equity funds or advisors, mostly for accredited investors |
| Publicly traded alternatives | Listed alternative asset managers such as Brookfield Asset Management (BAM) |
Farmland Investing in Canada
Farmland is mostly held by farmers and institutional investors. Canadian farmland managers such as Bonnefield, which provides land-lease financing to farmers, raise money from investors for their own funds; agriculture stocks and ETFs are the listed alternative.
Supporters of farmland point to rental and crop income and to values that do not move with the stock market day to day; the trade-offs are high minimums, fees and years-long lockups. Farm Credit Canada publishes an annual farmland values report with price changes by province.
Art and Collectibles
Fractional art and collectibles platforms sell shares in a painting, car or other collectible. Most are US-based, so check whether a platform accepts Canadian residents, what it charges (many take an annual fee and a share of any profit when the item is sold) and how you would sell your share before the platform does.
Art and collectibles are highly speculative. Returns are unpredictable and dependent on taste, trends, and finding a buyer.
Cryptocurrency
Crypto is the one alternative with no minimum and no accredited-investor rule: anyone can buy it on a registered crypto trading platform or through a Canadian-listed crypto ETF. It is also the most volatile. How to buy Bitcoin in Canada covers what to check first and how to buy, Bitcoin ETF vs buying Bitcoin directly compares the two routes, and the crypto tax guide covers how the CRA taxes dispositions, mining and staking.
Hedge Funds in Canada
| Feature | Detail |
|---|---|
| Minimum | Usually high, set by each fund |
| Accredited investor | Usually required for private hedge funds |
| Strategies | Long/short equity, global macro, market neutral, event-driven |
| Fees | A management fee plus a performance fee |
| Liquidity | Periodic redemptions, often with advance notice |
| Performance | Varies widely by fund and strategy; compare after fees with low-cost index funds |
| Regulated by | Provincial securities commissions |
Accredited Investor Requirements in Canada
| Path | Requirement |
|---|---|
| Financial assets | More than $1,000,000 in financial assets such as cash and securities (not real estate), alone or with a spouse, before taxes and net of related debts |
| Net income | Net income before taxes above $200,000 (or $300,000 combined with a spouse) in each of the 2 most recent years, and expected to exceed it this year |
| Net assets | Net assets of at least $5,000,000, alone or with a spouse |
| Registered adviser or dealer | Being registered under securities law as an adviser or dealer |
Eligible investor is a separate, lower test used for some offering-memorandum investments: net assets above $400,000 (alone or with a spouse), or net income before taxes above $75,000 (or $125,000 with a spouse) in each of the 2 most recent years, with the same expected this year. All of these tests are set out in National Instrument 45-106.
Should You Invest in Alternatives?
What is open to whom
| Investor | Alternatives generally available |
|---|---|
| Any investor | Crypto, publicly traded REITs, commodity and gold ETFs, publicly traded private-equity managers, some crowdfunding platforms |
| Eligible investor (exempt-market rules) | Some offering-memorandum investments, subject to annual limits |
| Accredited investor | Most private equity, hedge funds, private debt and private REIT offerings |
Alternatives vs Simple Index Investing
| Factor | Alternative Investments | Index ETFs (XEQT/VEQT) |
|---|---|---|
| Returns | Vary widely by asset and manager | Track global stock markets (see average stock market returns) |
| Fees | Management fees, often plus performance fees | 0.19% (XEQT) and 0.22% (VEQT) MER |
| Liquidity | Days to years | Sell on the TSX during market hours |
| Transparency | Low | High: public holdings |
| Diversification benefit | Some (low correlation) | Already globally diversified |
| Complexity | High: due diligence required | Very low: buy and hold |
| Minimum investment | From a few hundred dollars to very large amounts | The price of one unit |
| Appropriate for | Experienced, higher net worth | Everyone |
Risks of Alternative Investments
| Risk | Detail |
|---|---|
| Illiquidity | Many alternatives lock up your money for years |
| High fees | Management and performance fees reduce returns |
| Fraud risk | Less regulation than public markets |
| Complexity | Hard to understand and evaluate |
| Valuation uncertainty | Private assets don’t have market prices: valuations are estimates |
| Manager risk | Performance depends heavily on the fund manager |
| Lack of transparency | Limited reporting compared to public companies |
| Survivorship bias | Data only includes surviving funds: failed funds disappear from records |
| Tax complexity | Various structures create complicated tax reporting |
Related Resources
Sources
The figures and rules on this page come from these sources, last checked against them on September 25, 2026. How we check facts.
- BlackRock iShares: iShares S&P/TSX Capped REIT Index ETF | XRE
- BlackRock iShares: iShares Core Equity ETF Portfolio | XEQT
- BMO Global Asset Management: ZRE - Factsheet
- Vanguard: FTSE Canadian Capped REIT Index ETF | Vanguard Canada
- Vanguard: Factsheet | August 31, 2026
- Vanguard: All-Equity ETF Portfolio | Vanguard Canada