Creating Your Own Investment Fund: Private Equity < DIY Your Generational ROI

After two decades as a 10x entrepreneur and strategic investor, having built and acquired over 10 businesses with my own capital, I often hear people talk about "private equity" as this inaccessible, elite world. They think you need a massive institutional fund to play in that sandbox. 

I'm here to tell you that you can create your own investment fund, bypassing traditional structures, and directly controlling your investment destiny for unparalleled generational gains. In fact, for most entrepreneurs and ambitious individuals, DIYing your Private Equity can yield far superior returns and more direct control than any large institution can offer.

This isn't theory; it's how I've operated. My "fund" isn't a Wall Street entity; it's a strategic deployment of my own money into businesses and assets that I identify, acquire, and grow.

The Brain on Control: The Power of Direct Agency

Our brains have a strong preference for control and agency. When we feel directly responsible for and engaged in our financial decisions, it activates the prefrontal cortex for strategic planning and decision-making, and the nucleus accumbens for reward. Handing your money over to a large, opaque private equity fund can feel distant and disempowering. But when you're the one identifying opportunities, conducting due diligence, and negotiating deals, you feel that vital sense of direct impact.

This direct involvement not only leads to potentially better financial outcomes but also a deeper understanding and fulfillment from your wealth-building journey. You're building something with your own hands, not just a spreadsheet.

My Experience: From Profits to Portfolio (My DIY Fund)

My "investment fund" didn't start with a multi-million-dollar capital raise. It started by generating substantial profits from my initial operating businesses. Instead of spending those profits, I strategically reinvested them.

Let me give you a peek behind the curtain:

1. Profit as Capital: The consistent, strong cash flow from one of my established businesses became the seed capital for my "fund." I literally used those profits to go hunting for new assets.

2. Targeting Overlooked Assets: Big private equity firms often chase large deals ($20M+). This leaves a vast market of highly profitable, smaller businesses ($1M-$10M revenue) ripe for the picking. I focused on these "orphan" businesses – often family-owned, ready for an owner to retire, or needing a fresh strategic injection. For example, I acquired a local service company in this range. A traditional PE fund wouldn't touch it, but for my "fund," it was a perfect fit, providing strong cash flow and synergistic opportunities with my existing ventures.

3. Direct Deal Sourcing: I don't wait for brokers to bring me deals. I actively network, ask questions, and engage directly with business owners. Often, the best deals aren't publicly listed; they're relationship-based.

4. Strategic Capital Allocation: Each time a business generated surplus cash, I evaluated where to deploy it next. Was it another acquisition? A real estate investment? Or perhaps enhancing an existing portfolio company? This constant, active capital allocation is my private equity fund at work.

5. Long-Term Hold: Unlike many private equity funds that have a fixed "exit" timeline (often 3-7 years), my "fund" has a generational horizon. I can hold businesses indefinitely, optimizing for long-term cash flow and appreciation, rather than being forced into a sale. This freedom allows for compounding returns that traditional funds simply can't match due to their investor obligations.

My "fund" is decentralized, agile, and fiercely focused on long-term value. It's a testament to the power of using your own money, your own expertise, and your own strategic vision.

Your Blueprint for a DIY Generational Investment Fund

1. Generate Surplus Capital: Your first step is to create a strong source of capital – whether it's high income from a career, profits from your first business, or disciplined savings.

2. Educate Yourself on Acquisitions: Become proficient in identifying, valuing, and negotiating business deals. This is your core competency as a DIY private equity investor.

3. Define Your Investment Thesis: What kinds of businesses or assets make sense for your fund? What industries? What size? What risk profile?

4. Build a Deal Flow Network: Cultivate relationships with local business brokers, accountants, lawyers, and other entrepreneurs. Let them know what you're looking for.

5. Actively Deploy Capital: Don't let cash sit idle. Continually seek out high-potential opportunities to acquire assets that align with your generational vision.

6. Focus on Long-Term Value & Cash Flow: Resist the urge for quick flips. Your fund is designed for compounding wealth over decades.

For the ambitious woman already excelling in her corporate career, you are already managing large budgets and strategic initiatives. It's time to channel that brilliance into managing your own capital as a private equity investor. You don't need permission or external capital to start building your generational empire.

Be emPOWERed 👑 

Tactical Advice: If you have existing investment accounts (brokerage, retirement, etc.), identify the percentage of your portfolio currently in "alternative" or private assets versus public market investments. Then, research one small, privately held business for sale in your local area or online that's within your realistic budget. Start thinking about how you could acquire it with your own capital.

Affirmation: I am my own investment fund. I strategically deploy my capital, acquire valuable assets, and control my destiny for unstoppable generational growth.