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.

Related: I’ve Interviewed Over 100 Entrepreneurs Who Started Businesses Worth $1 Million to $1 Billion or More. Here’s Some of Their Best Advice.

From operator to investor

Most entrepreneurs are natural private capitalists — they just don’t always recognize it.

You’ve built something from nothing. You’ve taken on risk, raised funds, optimized for growth and learned how to read a balance sheet backward and forward. Those instincts translate well into the private capital world.

What’s more, private capital offers a way to stay close to the entrepreneurial ecosystem. Whether you’re supporting the next wave of founders, helping scale solutions in industries you care about or investing in the built environment of the communities you live in, these investments aren’t always just passive holdings. They can, in some cases, be participatory.

And they can also be personal.

How to get started: A practical primer for entrepreneurs

You don’t need to reinvent your investment strategy overnight. If you’re curious about adding private capital to your portfolio, you should always talk to an advisor, but here are four ways to get started:

1. Start small and think long-term. Private capital isn’t about quick wins. Returns often take years to materialize. Begin with a modest allocation—something you can afford to keep illiquid—and give it time to work. A typical minimum might be a $250,000 investment.
2. Diversify your bets. Just like with public markets, diversification matters. You’ll want to consider spreading your capital across asset types (equity, credit, real assets) and across themes or sectors that interest you. For example, you might back a clean energy fund, participate in a real estate project and still make space for that promising early-stage company in your industry.
3. Know your liquidity needs. Private capital requires patience — and access. We always advise clients to make sure they’ve covered near- and mid-term cash needs before they commit. Private investments are usually locked up for years, and early exits can be expensive or unavailable.
4. Prioritize alignment and access. Great private investments tend to be relationship-based. That can mean investing through trusted managers or pooling resources with like-minded peers. Pay close attention to the incentives: Are the managers putting their own capital in? Are the fees structured in your favor? Transparency and alignment matter more here than almost anywhere else.

Related: Why Founders Outside Silicon Valley Have an Advantage

Private capital as a long-term strategy

You may have heard the proverb, “The best time to plant a tree was 20 years ago. The next best time to plant a tree is today.”

Often attributed to Chinese wisdom, the exact source is unknown, but the intention is incredibly relevant to the idea that an investing strategy, including one focused on private capital, is a strategy that benefits from a long-term investment horizon.