Beyond Public Markets
Private Equity·Private Credit·Real Assets·Hedge·Digital

Six Alternative Classes.
Vetted. Coordinated.
Built For Real Diversification.
Allocated By VFC.
Private Markets·Lower Correlation·Premium Returns

A portfolio of only stocks and bonds is a portfolio with about half the diversification it could have. Public markets are correlated, transparent, picked over, and liquid — all of which means returns are bid down to whatever passive index funds deliver, and in bad years everything falls together. Real diversification, the kind institutional endowments and family offices use, comes from the alternative side of the asset class universe.

VFC builds the alternatives allocation from six distinct asset classes— private equity, private credit, direct real estate, infrastructure, hedge strategies, and selectively digital assets — with each allocation sized to the client’s liquidity needs, risk tolerance, and overall portfolio architecture. The goal is not to chase returns but to add durable diversification, illiquidity premium, and access to return streams the public markets simply don’t offer.

Build Your Alts Allocation → See The Six Classes
1 of
Very Few Firms In America

Alternatives Sourced, Vetted, And Allocated Like A Family Office.

Most advisors either ignore alternatives entirely or sell whatever the platform offers them — usually overpriced non-traded REITs and high-commission interval funds. VFC is one of the only firms in Americaoperating an alts program at the HNW client level with institutional-grade access, manager due diligence, fee transparency, and portfolio coordination. The same sources Yale, Harvard, and the largest family offices use — appropriately sized and selected for each individual client.

The Six Alternative Classes

What Goes In The Alts Allocation.

Each class below solves a different diversification problem. A complete alts allocation typically uses 3–5 of these togetherwith sizing based on the client’s liquidity profile, accreditation, and long-term goals.

CLASS 01

Private Equity

Ownership stakes in private operating businesses— buyouts, growth equity, venture capital. Historically the highest-returning alt class, with a 3–5% illiquidity premium over public markets. Long capital lock-ups (7–10 years) required.

Target Return 12–18%
Lock-up 7–10 yr
CLASS 02

Private Credit

Direct lending to middle-market businesses where banks have retreated post-2008. Senior-secured loans, floating-rate, contractual income. Functions like high-yield bonds with better protection and substantially higher yield.

Target Yield 8–12%
Lock-up 3–5 yr
CLASS 03

Direct Real Estate

Ownership of physical commercial and multifamily real estatethrough private syndications and funds. Tangible assets, inflation-protected cash flow, depreciation tax shield through K-1, leverage available at attractive rates.

Target Return 10–15%
Tax Benefit Depreciation
CLASS 04

Infrastructure

Equity in toll roads, energy pipelines, data centers, renewable generation, ports. Long-duration contracted cash flows. Functions as inflation-protected bond with equity upside. Historically very low correlation to stocks.

Target Return 8–12%
Lock-up 5–7 yr
CLASS 05

Hedge Strategies

Liquid alternative strategies — long/short equity, global macro, managed futures, multi-strategy. The point is not higher returns but lower correlation. Provide ballast when stocks and bonds fall together (as in 2022). Generally liquid quarterly.

Target Return 6–10%
Lock-up Quarterly
CLASS 06

Digital Assets (Selective)

For clients with the appetite, a small (1–3%) allocation to institutional-grade digital asset exposurethrough regulated funds — not direct holdings. High volatility, low correlation, asymmetric upside. Deliberately sized so a total loss doesn’t damage the plan.

Sizing 1–3%
Risk High
A Real HNW Allocation Profile

What 25% Alts Actually Looks Like.

For a typical $5M+ portfolio at VFC, the alts allocation runs around 20–30% of total assets, broken across multiple classes for true diversification. The chart shows a balanced allocation for an accredited HNW family with moderate liquidity needs.

The remaining 70–75% of the portfolio is in public markets — tax-efficient equity indexing, municipal bonds, direct indexed positions — with the alts sleeve providing the real diversification, illiquidity premium, and access to return streams the public side can’t offer.

Sizing matters enormously. Too small and the alts can’t move the needle. Too large and the portfolio can’t meet ongoing liquidity needs. VFC sizes each client’s allocation deliberately against the rest of the financial picture.

Sample Alts Allocation

$1.5M alts sleeve inside a $6M HNW portfolio · illustrative

Private Equity
50%
50%
Private Credit
25%
25%
Direct Real Estate
10%
10%
Infrastructure
8%
8%
Hedge Strategies
5%
5%
Digital (Selective)
2%
2%
Allocation tuned to client liquidity profile, age, accreditation, and overall plan. Each client’s allocation is unique.
Client Example · Anonymized

The $14M Portfolio That Lost Its Diversification And Got It Back.

Couple held a 100% public-market portfolio — sophisticated allocation, no alternatives. In 2022, stocks and bonds fell together and the portfolio drew down 19% in a single year. VFC rebuilt the architecture with strategic alts.

Client Profile

Recently retired couple, ages 64 and 62. $14M investment portfolio, no business income, lifestyle requires roughly $400K annual distribution. Self-directed for years with a discount brokerage.

Allocation entering 2022: 70% stocks, 30% bonds, zero alternatives. Believed they were diversified because they held both stocks and bonds. The year proved otherwise.

What VFC Built Over 18 Months

Tax-Efficient Public SleeveRebuilt the 75% public-market allocation using direct indexing, tax-efficient ETFs, and a state-specific muni bond ladder for the bond portion.
Private Equity Allocation$800K committed across two institutional-quality buyout funds over 24-month vintage diversification. Long lock-up but historic 14%+ net returns.
Private Credit Sleeve$500K into a senior-secured private credit fund yielding 10.4% quarterly distributions — replacing some of the high-yield bond exposure that had failed in 2022.
Direct Real Estate$300K into a multifamily syndication with 8% preferred return and tax-shield depreciation flowing through K-1.
Infrastructure Fund$250K into a renewable energy infrastructure fund with 9% contracted distributions, inflation-linked.
Liquid Alt Hedge Allocation$200K into a multi-strategy hedge program for liquidity ballast — quarterly liquid, designed to be uncorrelated during stock/bond drawdowns.
Cash Flow SequencingRestructured so monthly distributions come from the most liquid sleeves first, with the private commitments providing wealth growth in the background.
Annual Rebalance & ReviewAllocation reviewed each year against actual cash needs and portfolio evolution. Commitment pacing planned for 5+ years out.
25%
Alts AllocationOf total portfolio
6
Asset ClassesInside the alts sleeve
9.8%
Blended YieldFrom the alts cash flow
11%
Lower Drawdownvs. prior portfolio in stress test
What VFC Alternatives Delivers

Diversified. Vetted. Family-Office Style.

6
Asset ClassesIn the alts library
20–30%
Typical SizingFor HNW portfolios
3–5%
Illiquidity PremiumAbove public market peers
Annual
Manager ReviewContinuous diligence
Inside Investment & Retirement

Alternatives Connect To Every Other Layer.

Tax-Efficient Investments

The Public Side

Tax-efficient public markets paired with the private alts sleeve.

 Real Estate Direct

Direct Property

Going beyond syndicates into direct real estate ownership.

 REITs

Liquid Real Estate

Public REIT exposure in the public-market portion of the portfolio.

 Opportunity Zones

Capital Gains Deferral

Tax-advantaged alternative for clients selling appreciated assets.