Private Capital Isn't Just for the 1% — How Entrepreneurs Can Invest Like the Rich
Many entrepreneurs know how to raise private capital — but far fewer understand how to invest it.
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Key Takeaways
- Entrepreneurs can apply their operating mindset to long-term private investments outside public markets.
- Private capital lets founders invest patiently, align values and build wealth beyond public markets.
If you’re an entrepreneur, chances are you’ve raised “private capital” in some form to grow your business. But have you ever thought about becoming an investor?
Private capital — investments made outside of the public markets — were once seen as the exclusive territory of institutional investors or multi-millionaires. But today it’s almost mainstream, and increasingly, it’s a space where successful founders and business owners can participate, not just to potentially grow wealth, but to align investments with values, passions and long-term vision.
And for a business owner or family looking to outperform, keep up with inflation and try to “beat the [public] market,” private capital can allow you to take the playbook you used to build your business — and apply it to your own family’s portfolio.
And while you don’t need to be part of the financial elite to take part, you do need to be thoughtful about it, get the right advice and stick to a plan.What counts as private capital?
Private capital refers to investments made in privately held assets — things that don’t trade on the public stock market. Broadly, these include:
- Private equity, where you invest in privately owned companies, often through funds or direct deals. This can span a company’s life-cycle (from startups and venture capital through to growth equity and finally to leveraged buyouts or LBOs).
- Private credit, which includes lending to businesses and on assets outside of traditional banking channels.
- Private real assets, like real estate, infrastructure, farmland or energy projects.
- Opportunistic or uncollateralized investments, which might include emerging segments such as sports teams, collectibles or ownership stakes in niche assets.
These opportunities generally offer the potential for higher returns than their public market equivalents, but they come with trade-offs: less liquidity, longer time horizons and a need for more due diligence. For business owners used to making strategic decisions under uncertainty, that may feel less like a drawback — and more like familiar ground.