Want to Pick your ROI? Choose Private Equity.

Ever feel like picking stocks is a bit like playing the lottery? You're not wrong.

Here's the uncomfortable truth: only 4% of publicly traded stocks actually drive the market's outperformance. That means 96% are basically just along for the ride, or worse, dragging your portfolio down. Retail investors, bless their hearts, often lose out thanks to trading costs, behavioral biases, and the simple fact that beating the market is brutally hard. Even the professionals struggle.

So if you're tired of the public market casino, where's a smart investor supposed to turn?

The Public Market Illusion

The S&P 500 gets all the press. CNBC talks about it every day. Your uncle mentions it at Thanksgiving. But here's what they don't tell you: the S&P 500 represents a shockingly small slice of the American economy.

Over 80% of U.S. employment happens in private companies. And get this, 87% of firms with revenues over $100 million are private. You read that right. Nearly nine out of ten substantial businesses operate outside the public markets entirely.

When you're investing only in public stocks, you're essentially betting on the lottery winners while ignoring the massive, thriving economy happening behind closed doors. It's like going to a restaurant and only ordering from the kids' menu.

Welcome to the Private Market Opportunity

This is where private equity changes the game.

Private equity gives you access to that other 80%, the part of the economy where most people actually work, where most large companies actually operate, and where returns aren't held hostage to daily market volatility and CNBC panic attacks.

Can you actually "pick your ROI" with private equity? Well, not in the sense of ordering returns like you'd order a sandwich. Private equity funds do set specific return targets based on their strategy, but actual returns depend on fund quality, manager expertise, and market conditions. You can't guarantee outcomes.

But here's what you CAN do: choose your strategy. Choose your manager. Choose your risk profile.

Seed-stage venture funds might aim for 100× returns on their winners. Mid-stage funds typically target 10–20× multiples. Late-stage deals and buyout funds usually seek more conservative 3–5× returns. Each approach carries different timelines, risk levels, and return expectations.

You're essentially picking your battleground instead of being forced into the daily chaos of public markets.

The Numbers Tell a Story

Over the last 25 years, the Cambridge Associates US Private Equity Index delivered 12.09% pooled net returns compared with 8.46% for the Russell 2000 and 9.38% for the S&P 500. That's a meaningful difference when compounded over decades.

Now, I'm not going to sugarcoat this. Private equity performance varies dramatically based on manager quality and timing. Top-quartile managers significantly outperform the median: and the gap is substantial. In 2025, for example, top-quartile global buyout returns averaged only 8% IRR, actually underperforming major stock indexes that year.

This brings us to a critical point: manager selection matters enormously in private equity. Unlike buying an index fund where you get average returns by definition, private equity performance follows a power-law distribution. A small share of portfolio companies generate the bulk of profits while most produce modest or no gains.

That's why proper vetting and due diligence are essential. You're not just picking "private equity": you're picking specific funds, specific managers, and specific strategies.

Moving Beyond the Public Market Roller Coaster

Traditional stock investing means volatility. It means watching your portfolio swing 20% based on whether Jerome Powell sounds optimistic or pessimistic in a press conference. It means trying to time the market, then reading articles about how timing the market is impossible, then feeling bad about yourself.

Private equity investments typically have longer holding periods: often 5-10 years. This sounds scary to some investors, but it's actually liberating.

You're not checking your balance every day. You're not tempted to panic sell during market corrections. You're not trying to outsmart high-frequency trading algorithms. You're making a strategic allocation, then letting professional managers do what they do best while you live your life.

Additionally, real estate syndication and private equity deals often provide something public stocks rarely deliver: transparency about the underlying assets. You can actually understand what you own: a specific property, a specific operating company, a specific strategy. Try explaining what you "own" when you buy a share of a mega-cap tech stock.

The Documentation Mountain (And How to Avoid Climbing It)

Here's where most investors hit a wall when considering private equity: the paperwork.

Self-Directed IRA LLC setup. Operating agreements. Subscription documents. Custodian coordination. Entity management. If you've ever tried to invest retirement funds in alternative assets, you know the documentation can be overwhelming.

This is exactly why ET Capital Partners exists.

We handle the heavy lifting that keeps most investors stuck in traditional portfolios. Need help with SDIRA LLC setup? We facilitate that. Wrestling with subscription documents and operating agreements? We manage that. Looking for secure document storage and relationship coordination? We've built systems for that.

Our approach is straightforward: developers and sponsors bring the deals, we facilitate the operational backbone that makes those deals accessible to investors like you. Investment documentation management doesn't need to be a nightmare: not when you have a team that's done it hundreds of times.

Making the Jump

Clearly, private equity isn't some magic bullet that eliminates investment risk. Every investment carries risk, and private equity comes with its own challenges: illiquidity, higher minimums, manager selection difficulty, and fee structures that require careful evaluation.

But if you're tired of feeling like a passive passenger on the public market roller coaster, private equity offers something different: strategic choice.

You can select strategies aligned with your risk tolerance and timeline. You can access the 80% of the economy that public markets ignore. You can build portfolios around real assets and operating businesses instead of daily stock price movements.

And with the right facilitation partner, you can navigate the documentation maze without losing your mind.

Your Next Move

The private market opportunity is real. The performance data is compelling. The diversification benefits are significant.

What's stopping most investors isn't lack of interest: it's operational complexity.

If you're ready to explore how private equity and real estate syndication could fit into your portfolio strategy, we'd be honored to walk you through the process. From SDIRA LLC setup to document management to relationship coordination, we handle the details that typically create barriers.

Want to learn more about how ET Capital Partners facilitates private equity investments for developers and their partners? Reach out to us to find out more about current opportunities and how we can help streamline your alternative investment process.

The public markets will always be there, humming along with their 4% of outperforming stocks. But that other 80% of the economy? That's where the real opportunities live: and private equity is how you access them.

Time to stop playing the public market lottery and start building a portfolio that reflects the full American economy.