Is NOW the time to invest in Private Equity?

Let's cut to the chase: You're wondering if 2026 is the year to finally make the jump into Private Equity. And honestly? The data suggests you might be asking this question at exactly the right time.

The Track Record Speaks for Itself

Here's something that might surprise you: Private Equity hasn't just edged out public equity over the years: it's beaten it by a significant margin. We're talking across 5, 10, 15, and 20-year periods. Consistently.

While your neighbor's been bragging about their S&P 500 returns, Private Equity investors have been quietly building wealth at a faster clip. Why? Because PE firms aren't just buying stocks and hoping for the best. They're rolling up their sleeves, getting involved in operations, and actively driving value in the companies they own.

That's not passive investing. That's strategic ownership. And it shows up in the returns.

Diversification That Actually Means Something

You've probably heard the word "diversification" thrown around so many times it's lost all meaning. But here's what makes Private Equity different: it has a lower correlation to public market movements.

Translation? When the S&P 500 decides to have a bad day (or month, or year), your Private Equity investments aren't necessarily following it off a cliff. They're operating on a different timeline, driven by different factors: operational improvements, strategic acquisitions, market positioning.

This isn't just theory. During downturns like the 2008 financial crisis, Private Equity demonstrated something remarkable: resilience. PE managers have more active control over their portfolio companies. They can cut costs, pivot strategies, and make operational changes that public company CEOs: who have to answer to quarterly earnings calls: simply can't execute as quickly.

What About Your 60/40 Portfolio?

If you're running a traditional 60% stocks, 40% bonds portfolio, you're probably wondering if adding Private Equity is worth the hassle. Here's the thing: historical data shows that adding PE to that classic mix can potentially increase returns disproportionately to the risk you're taking on.

Think about it this way. You're not just adding another asset that zigs when your stocks zag. You're adding an entirely different engine of returns: one that's powered by operational improvements, strategic repositioning, and value creation rather than just market sentiment.

Clearly, there's risk in any investment. Private Equity comes with illiquidity, longer time horizons, and the need to properly vet managers. But if you're looking at a 5 to 10-year investment window? The numbers suggest it's worth taking a serious look.

So Why NOW?

Let's talk about timing. Private Equity is entering 2026 with strong momentum. Exit volumes are climbing back from their recent lows. The U.S. IPO market is opening up for high-quality assets. And here's something that matters to your bottom line: the average cost of funding for middle market term loans has fallen significantly.

Lower financing costs mean better internal rates of return for PE funds. That filters down to you, the investor.

Additionally, we're seeing specific growth areas lighting up:

• AI-driven value creation is no longer just a buzzword: PE firms are deploying AI to improve operations, cut costs, and create new revenue streams
• Private credit has exploded (the U.S. market has doubled since 2019 to nearly $1.3 trillion)
• Infrastructure and energy deals are heating up as the world transitions to new power sources
• Healthcare continues to present massive opportunities as demographics shift

But here's the kicker: new liquidity pathways are developing. Continuation vehicles, evergreen funds, and secondary markets are making Private Equity more accessible than ever: especially for wealth investors who previously found the asset class too locked up.

The Challenges (Because We're Not Hiding Anything)

With that said, let's be honest about what you're up against. Valuations are at record highs: EBITDA multiples hit 11.8 times in 2025. Buyout firms are contributing more equity in absolute terms, which means they can't rely on leverage as much to juice returns.

Competition for capital is intense. Fundraising remains subdued, particularly for smaller and emerging managers. And returns are expected to be "more uneven" than in previous cycles.

What does that mean for you? Manager selection matters more than ever. You can't just throw money at any PE fund and expect magic. You need high-quality deal sourcing, disciplined underwriting, and managers who know how to create value in a competitive environment.

The Admin Headache Nobody Talks About

Here's where a lot of people stall out. You've done your research. You've found the right PE opportunity. You're ready to invest through your Self-Directed IRA to get the tax advantages.

And then... the paperwork hits.

Setting up an LLC. Forming the right structure for real estate investments. Coordinating with your SDIRA custodian. Managing ongoing documentation and compliance. It's enough to make your head spin.

This is exactly where we come in. At ET Capital Partners, we handle the operational heavy lifting so you can focus on what matters: making smart investment decisions. We facilitate SDIRA LLC setup, manage LLC formation for real estate investments, and serve as a fund administrator for real estate syndications.

Think of us as the operational backbone. We're not here to pick your investments for you. We're here to make sure that once you've made your decision, the execution is seamless. Documentation? We've got it. Relationship management between you and developers? Covered. Compliance and ongoing admin? Handled.

Making Your Move

If you've been sitting on the sidelines waiting for the "right time" to invest in Private Equity, the current market presents a compelling opportunity: provided you're selective and working with properly vetted managers.

The historical performance data is strong. The diversification benefits are real. The current market momentum suggests increased liquidity and improving exit opportunities. And the administrative barriers that used to keep smaller investors out? Those are shrinking.

We're not saying you should rush into every PE deal that crosses your desk. We're saying that if you've been curious about how private equity performance could impact your portfolio, now's the time to take a good hard look.

Whether you're a developer looking to syndicate a deal or an investor ready to diversify beyond the public markets, the infrastructure exists to make it happen. You just need the right partners to handle the details.

Ready to explore how Private Equity fits into your investment strategy? Contact us to discuss your specific situation. We'll walk you through the process, help you understand the requirements for proper LLC formation for real estate investments, and show you exactly how we facilitate the relationship between developers and their partners.

The market's moving. The opportunities are real. The only question left is whether you're ready to act on them.