Alternative Investments: Basics of Private Equity, Private Credit Investing

Are you financially established and ready to go beyond basic investments? If you’ve outgrown traditional portfolios, alternative investments like private equity and private credit could help you grow and protect your wealth. These investments offer strong returns and diversification, but they aren’t easy to access or manage alone.

At Watts Gwilliam, we help long-term investors navigate private markets and alternative strategies with confidence, from access to oversight.

What Is Private Equity?

Private equity means investing in companies that aren’t publicly traded. These investments are made through funds that buy, grow, and eventually sell private businesses. Private equity targets long-term growth and often requires capital to be locked up for several years.

Quick Summary: Private equity helps investors grow wealth through private company investments over 5–10 years.

What Is Private Credit?

Private credit refers to loans made directly to companies, outside the traditional banking system. These loans often offer higher income and floating-rate returns. Private credit most often comes into play with lending opportunities to small- and medium-sized businesses, who may be highly leveraged and generally cannot borrow in corporate bond markets.

Quick Summary: Private credit offers steady income through non-bank lending with lower correlation to public markets.

How Can You Access Private Equity and Credit as an Individual Investor?

Most private market funds require high minimum investments and are invitation-only. Without the right connections, they’re often out of reach.

Watts Gwilliam may be able to help you:

• Access institutional-quality alternative investments like private equity and credit
• Invest through feeder funds with lower entry points
• Evaluate opportunities with full transparency

Which Private Investments Are Right for Your Financial Goals?

Not every private fund is a good fit. Some are aggressive, others conservative. Your needs, time horizon, and tax situation all matter.

At Watts Gwilliam, we help you:

• Align private market investing with your personal goals
• Balance risk and liquidity needs
• Understand fund terms, fees, and expected outcomes

Pro Tip: Don’t chase high returns—invest with a strategy. At Watts Gwilliam, we focus on alignment, not just access.

What Does a Financial Advisor Do to Manage Private Investments?

Private investments come with complexity. Capital is called over time, reports are dense, and taxes require planning.

Watts Gwilliam takes care of:

• Capital call tracking and cash flow coordination
• Performance monitoring and quarterly reporting
• K-1 tax document handling and planning

Myth: “Private investments are too complex for individuals.”
Truth: With the right partner, they become clear, structured, and powerful.

Do Private Equity and Credit Help Avoid Market Volatility?

Yes—but not by eliminating risk. Private equity and credit reduce exposure to daily price swings because they aren’t priced like public stocks. Their long-term focus, quarterly reporting, and low correlation to public markets can smooth out the ride. However, they still carry real risks and require careful planning.

Summary: Private Markets, Managed Smartly

Private equity and credit are powerful alternative investments for investors who want more than market averages. But they require expertise.

Watts Gwilliam helps you:

• Access high-quality private market opportunities
• Match investments to your strategy
• Manage every step with confidence

Ready to Learn More?

Thinking about alternatives to public markets? Let Watts Gwilliam help you explore private investments that fit your future. You can schedule a complimentary consultation with us here.

FAQ: Private Equity, Private Credit, and Watts Gwilliam

What is private equity?

Private equity is an investment in private companies through pooled funds. It targets long-term returns, typically realized when businesses are sold or go public.

What is private credit?

Private credit refers to lending directly to companies without involving a bank. It often provides steady income with floating-rate returns.

Can individual investors access private investments?

Yes, but it’s difficult without advisor access. Watts Gwilliam connects individuals to exclusive alternative investments like private equity and private credit, with expert oversight.

Are private investments risky?

They carry risks like illiquidity and complexity. Watts Gwilliam vets each investment carefully and ensures it fits your financial goals.

Do private equity and private credit reduce market volatility?

Yes. These investments are not priced daily, which reduces visible volatility. They also tend to move independently of public markets, helping long-term investors avoid day-to-day swings.

Why choose Watts Gwilliam?

Watts Gwilliam helps financially established investors access, evaluate, and manage private market investing from start to finish—with clarity and care. If you’re interested in exploring private equity and credit with our team, you can schedule a free consultation here.

Disclosure
This content is for informational purposes only and should not be considered financial, tax, or legal advice. Individual circumstances vary, and tax and estate laws are subject to change. Consult a qualified professional before making any decisions. Watts Gwilliam & Company is an SEC-registered investment advisor; registration does not imply a certain level of skill or training. We act as fiduciaries, prioritizing clients’ best interests and fully disclosing any material conflicts of interest. Investing involves risk, including potential loss of principal. Past performance is not indicative of future results.