MB531: Beyond Multifamily: Where Smart Money Is Moving Next

Show Notes

In this episode, I sat down with Patrick to trace how he assembled a portfolio of non-correlated alternative investments and how he structured 50/50 partnerships with other operators.

We get into his framework for identifying non-correlated asset classes, how a litigation finance fund works, and how medical receivables financing generates stable returns that don't track real estate or equity market cycles.

We also cover why he stepped away from minority LP positions, what it took to get institutional operators to open their deal flow to accredited investors, and how his education platform turns investor curiosity into long-term capital relationships.

If you're an active real estate investor thinking about asset class diversification, or a capital raiser trying to build a platform around alternatives, this episode gives you a concrete model to study — one built over years, across multiple asset classes, with operators who came from the institutional side of the table.

Key Takeaways

Single-asset-class concentration creates exposure that diversification across non-correlated assets eliminates

When interest rates rose, multifamily values compressed; operators with capital only in real estate had no other position to fall back on.
Sovereign wealth funds and large private equity firms allocate across non-correlated assets rather than developing deep expertise in each one.
Find operators 10–15 years into a specialization and partner with them rather than starting from scratch in a new field.
Asset classes including legal finance, medical receivables, metals, and private credit have tracked through recessions without the volatility seen in real estate, oil, or equities.

Litigation finance provides returns that hold through recessions and rate cycles

The fund takes a secured position against a defined pool of case contracts and earns a preferred return plus a participation in profits at settlement.
Patrick's litigation fund holds $76 million in collateralized claims spread across 8,000+ individual lawsuits and 10+ separate attorney financing facilities.
Cross-collateralization across thousands of cases and multiple facilities gives investors loss protection that single-case institutional deals don't carry.
Lawsuit volume holds through economic downturns — it doesn't track interest rates, real estate cycles, or equity markets.

The 50/50 GP structure gives capital raisers full transparency and real decision-making authority

After watching minority LP positions go sideways with no access to information or ability to intervene, Patrick set a rule: 50/50 GP or no partnership.
The 50/50 structure gives him signing authority on PPMs, direct access to all accounts, K-1s under his name, and full transparency into asset performance reports.
Early-stage capital raisers typically begin as co-GPs or feeder fund managers; the 50/50 structure is the outcome of building a capital-raising track record, with minority positions as the starting point.

An education-first platform builds investor relationships that outlast any single fund

Patrick runs Alternative Investing Mastery, a biweekly session series covering 80+ alternative investment strategies.
The education model attracts investors who want to understand the landscape before committing capital anywhere.
Presenting 80 options and then curating 4 with explicit reasoning builds credibility that direct fund marketing doesn't.
Investors who join for education on 80 strategies stay engaged when Patrick explains why 4 were selected — the reasoning itself becomes part of the value proposition.