Private Investments

Publicly traded companies represent only a small fraction of businesses in the U.S. Incorporating private equity and other alternative investments opens access to new markets and untapped sources of potential return.

Private equity refers to ownership in companies that are not publicly traded on stock exchanges. Investors allocate capital to private equity managers, who acquire ownership stakes in private companies to support growth, drive operational improvements, and ultimately position the business for a sale or public offering. These investments are typically made through illiquid funds with lock-up periods of 10 years or more.

Private credit is direct, non-bank lending, provided to companies by private credit funds. Unlike traditional public debt, private credit arrangements are privately negotiated, offering more flexible terms to borrowers and attractive yield to investors.

Private equity refers to ownership stakes in companies that are not publicly traded. These companies can range from early-stage startups to mature, established businesses.

Venture capital (VC) is a subset of private equity that focuses on investing in early-stage companies, often pre-revenue or in their initial growth phases. VC investing generally involves higher risk because early-stage companies have a greater chance of failure or default.

Heritage Financial invests across a diverse type of fund structures, encompassing growth equity, mature buyouts, private credit, and real estate for clients.

In general, private equity tends to appear more stable during market downturns compared to publicly traded investments. Private equity holdings are typically valued quarterly. This less frequent pricing can help smooth out short-term market volatility; however, it also requires investors to maintain a long-term perspective and accept the illiquidity inherent in these investments.

Private equity can be a valuable component of a well-diversified portfolio, offering the potential for enhanced returns over time. However, like all investments, it carries risks—including during periods of economic stress—so careful selection and a long-term mindset are essential.

Heritage Financial has over 15 years of experience investing in private equity for our clients. What sets us apart is the depth of our due diligence process, the strength of our manager relationships, and our commitment to building diversified portfolios designed to perform across market cycles.

Our seasoned investment team conducts rigorous, ongoing due diligence to construct portfolios that are thoughtfully diversified by vintage year, strategy, and management team, helping to manage risk and enhance long-term return potential.

Private investments can be a valuable part of a well-diversified portfolio, particularly for investors seeking long-term growth and comfortable with less liquidity. It offers access to opportunities not available in public markets and may enhance overall return potential when thoughtfully integrated into a broader investment strategy.

However, private investments typically come with longer time horizons, higher minimum investment requirements, and unique risks. It’s important to carefully consider how these factors align with your financial goals, liquidity needs, and overall risk tolerance. At Heritage Financial, we will help evaluate whether private investments fit within your overall wealth plan and investment objectives. Let’s Talk.