And why more high-net-worth individuals are adding it to their portfolios.
Private equity used to be a mystery to all but Wall Street insiders and billion-dollar endowments. But in recent years, it’s become a powerful tool in the wealth-building playbook of sophisticated investors—and one of the key differentiators between traditional portfolios and elite ones.
So, what do the wealthy know about private equity that most investors don’t?
A lot. And it’s not just access. It’s strategy, timing, structure, and guidance.
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Private equity (PE) refers to direct investment in private companies—businesses that aren’t listed on public stock exchanges. That could mean:
PE funds pool capital from high-net-worth individuals, institutions, and family offices—and aim for above-average returns over multi-year periods.
Private equity isn't liquid. That’s a feature, not a flaw. Wealthy investors know that tying up capital for 7–10 years can generate significantly higher returns when they don’t need immediate access to the cash.
Private equity funds often have steep minimums and aren’t advertised to the public. The wealthy gain access through financial advisors, private banks, or curated investment platforms.
🔍 Want in?
A financial advisor can connect you with vetted PE opportunities aligned to your risk profile. Compare advisors at Advisor.com →
Private equity often performs independently of public markets, offering a hedge against volatility. Wealthy investors use PE to diversify their portfolios with assets that aren’t affected by daily market swings.
Private equity can deliver strong returns—but it also comes with:
That’s why professional guidance is essential. The right advisor can help assess your goals, screen fund managers, explain terms, and ensure PE fits within your broader plan.
📈 It’s not about chasing returns. It’s about integrating smart alternatives into your long-term strategy—with help from someone who knows how.
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Private equity might be a fit if you:
Private equity isn’t just for the ultra-wealthy anymore—but it is still for the well-prepared.
The wealthy don’t just get richer because of what they invest in. They get richer because they know how to access the right opportunities, at the right time, with the right advice.
🎯 Want to learn how private equity could fit into your strategy?
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It’s how they do it.