An alternative investment is a financial asset that does not fall into one of the conventional investment categories. Conventional categories include stocks, bonds, and cash. Alternative investments include private equity or venture capital, hedge funds, managed futures, art and antiques, commodities, and derivatives contracts. Real estate is also often classified as an alternative investment.

Alternative investments typically have a low correlation with standard asset classes like stocks and bonds. This feature makes them a suitable tool for portfolio diversification. Investments in hard assets, such as gold, oil, and real property, also provide an effective hedge against inflation, because of this, many large institutional funds such as pension funds and private endowments often allocate a portion of their portfolios to alternative investments.

Diversification

Vida Capital's strategy is to offer a diversified investment portfolio consisting of bonds with a high level of diversification by bond type, duration and risk.

Consistent Returns

Alternative lending and private debt have historically produced consistent returns. Typical returns in Europe and the United States range from 5% to upward of 10% depending on risk, currency and duration.

Uncorrelated

The performance of alternative lending and private debt has typically been uncorrelated to the traditional capital markets providing a unique diversifying asset class to modern investment portfolios.

Low Volatility

Alternative lending and private debt create constant cash flow payments and are typically characterised by low volatility.