Regulated Alternative Investment: Urbanitae vs Non-Harmonized Funds
Alternative investment is experiencing remarkable growth in Europe, driven by investors seeking to diversify beyond traditional funds and gain exposure to real assets with greater control and transparency. However, not all alternatives are the same. On one end are non-harmonized funds, complex vehicles aimed at experienced investors capable of understanding advanced structures. On the other end are regulated and accessible solutions like Urbanitae, which allow investing in professional real estate assets from €500, within a supervised framework and operational design tailored for individual investors.
The main difference between these two models is not only the expected returns but also the type of risk assumed and the clarity with which the investor understands where their money is going. In a market where alternative investment is gaining prominence, it is essential to distinguish between vehicles designed for professionals and platforms created to democratize access under regulatory supervision.
Regulated Alternative Investment: What It Is and How It Works
When we talk about regulated alternative investment, we refer to models that allow access to assets beyond traditional funds—such as real estate, private debt, or development projects—but within a supervised framework that protects the investor. In Spain, this framework is defined by the CNMV, which sets requirements for transparency, governance, information, and risk management.
Regulation does not eliminate the inherent risk of any investment, but it does provide clarity. The investor knows which project they are participating in, who is developing it, the timelines involved, and the risks. Additionally, it enables access to investments that were traditionally reserved for high-net-worth individuals, lowering the entry barrier while maintaining a level of supervision that simplifies the user experience without requiring advanced technical knowledge.
Non-Harmonized Funds: What They Are and Why They Require Experience and Sophistication
Within the alternative investment universe, there are much more specialized vehicles: non-harmonized funds, also known as non-UCITS funds. Unlike harmonized funds, these products do not follow the same investor protection rules for retail investors and are usually aimed at those with experience, significant wealth, and the ability to analyze more complex structures.
These funds may invest in private debt, illiquid assets, derivatives, or strategies that require understanding less obvious risks. Their flexibility can be attractive to certain profiles, but the lack of regulatory uniformity and the sophistication required make them unsuitable for most individual investors. It is not a matter of being “better or worse,” but rather that they are products demanding a level of analysis and monitoring that not every investor can—or wants to—assume.
In this context, regulated and accessible alternatives are increasingly relevant, especially for those seeking exposure to real assets without entering complex structures.
What Type of Investor Benefits from Each Option
Non-harmonized funds may be suitable for a very specific profile: experienced investors seeking complex strategies, who tolerate prolonged illiquidity and have advisors capable of analyzing sophisticated structures. For these profiles, non-harmonized funds offer a broader, but also more demanding, universe.
Urbanitae, on the other hand, is aimed at individual investors who want to access real assets with transparency, without needing to master advanced vehicles or commit large amounts of capital. It also fits well in portfolio strategies seeking to complement other investments—such as funds, equities, or pension plans—adding diversification through concrete projects that the investor understands and can follow from start to finish.
Conclusion: Why Urbanitae Is Your Safe Entry to Alternative Investment
a time when alternative investment is gaining prominence, the question is not whether it is worth diversifying beyond traditional vehicles, but how to do it. Non-harmonized funds offer interesting opportunities but require a level of sophistication and monitoring that not all investors can manage. Urbanitae, in contrast, combines regulation, transparency, and accessibility, allowing investment in real assets from €500 with a clear understanding of the project and its risks.
For those seeking a safe and straightforward entry into alternative investment—without giving up professional analysis or diversification—Urbanitae stands out as a natural choice. A regulated alternative that brings opportunities once reserved for high-net-worth individuals closer to the individual investor.
