Investments That Used to Be Off-Limits -- Now They're Not.
For a long time, the best investors in the world have been putting serious money into private equity, venture capital, private credit, and real assets. Through Farther's platform, those same strategies are no longer locked behind $10 million minimums and exclusive invite lists.
The Approach Behind the Best Endowments -- and Why It Matters for You.
David Swensen, the legendary chief investment officer at Yale, basically rewrote the rulebook on how institutions invest. His approach -- now known as the Yale Model -- showed that putting a meaningful chunk into alternative investments can seriously improve returns over the long run. Under his watch, Yale's endowment grew from $1 billion to over $31 billion, consistently outperforming peers who stuck only with stocks and bonds.
The takeaway is pretty clear: going beyond public markets matters. Private equity captures value through hands-on improvement and longer holding periods. Private credit generates income that doesn't move in lockstep with stocks. Real assets give you inflation protection. And venture capital lets you invest in innovation before companies go public. Together, these strategies work alongside your traditional holdings and can smooth out the bumps in your overall portfolio.
Through Farther's platform, our clients can tap into these strategies through interval funds, private business development companies (BDCs), and select fund partnerships -- without the huge minimums and lengthy lockups that traditionally kept these out of reach for most families.
What this looks like for you:
- Private equity and venture capital through quality institutional vehicles
- Private credit and direct lending strategies for steady income generation
- Hedge fund strategies for portfolio diversification and downside protection
- Real asset investments including real estate and infrastructure
- Careful integration so alternatives complement your overall portfolio rather than complicating it
- Transparent fee analysis and thorough due diligence on every vehicle we recommend
Who Should Think About Alternatives?
Let's be honest -- alternatives aren't for everyone. They involve longer time horizons, limited liquidity, and more complexity than your typical stock or bond fund. We generally recommend them for families and individuals who check these boxes:
- $5 million or more in investable assets, so there's enough room to invest meaningfully without putting too many eggs in one basket
- A solid traditional portfolio already in place -- alternatives should add to what you have, not replace it
- A long-term mindset, with your near-term cash needs already covered through savings and traditional investments
- Comfort with the reality that these strategies come with lockup periods, capital calls, and less day-to-day pricing transparency
- A desire to build the kind of portfolio that the best endowments and family offices have been using for years
Not sure if alternatives belong in your portfolio? That's exactly the kind of question we love to dig into during a discovery conversation. We'll look at what you have now, your liquidity picture, and your long-term goals before recommending anything specific.
Questions About Alternative Investments.
What are alternative investments?
Alternative investments are anything outside the usual stocks-and-bonds world. Think private equity, venture capital, private credit, hedge funds, real estate, and infrastructure. Big university endowments, pension funds, and family offices have used these for decades to diversify and improve their returns. Now, through Farther, you can access many of the same strategies.
What is the minimum investment to access alternatives through Farther?
We generally suggest alternatives for families with $5 million or more in investable assets, because these strategies work best when they complement a solid traditional portfolio. The good news is that through Farther's platform, many high-quality vehicles are available at lower minimums than you'd find going direct to a fund -- often starting at $25,000 to $50,000 per position.
Are alternative investments liquid?
Most aren't -- and that's by design. Lockup periods typically range from one to ten years depending on the strategy. Some structures like interval funds and certain private BDCs do offer periodic liquidity windows, usually quarterly. We're careful about sizing these allocations so you always have enough liquid assets for anything that comes up.
How do you select alternative investment vehicles?
Every alternative investment goes through serious due diligence by Farther's investment committee. We look at the fund manager's track record, fee structure, strategy consistency, operations, and whether their interests are aligned with yours. We compare net-of-fee performance against what you could get in public markets, because the whole point is genuine diversification -- not just added complexity.
Alternatives Work Best as Part of a Bigger Picture.
Curious What Institutional-Quality Investing Looks Like?
A quick 30-minute call is all it takes. We'll talk about your portfolio, your goals, and whether alternatives make sense for you.
All investment strategies carry risk, including the potential loss of principal. Alternative investments are illiquid and may not be suitable for all investors. Past performance is not indicative of future results. The information on this page is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security.