What Should You Do With Your Exit Windfall?

Investment Choices Post-Exit

You’ve built your business. You’re approaching—or already navigating—an exit. And now, you’re starting to ask the question every founder with a potential liquidity event faces:

“What should I do with the profits from selling my company?”

If you’re weighing your options, advice from peers and advisors probably falls into two major camps: public market investments (stocks, bonds, ETFs) or private investments (private equity, venture capital, direct investments).

Both offer potential, and both carry risk. But as someone coming off the sale of a company, your situation isn’t average—and your next financial decisions shouldn’t be either.

Let’s break down how these two investment paths stack up, and what might be right for you.

Understanding Public Markets

Liquidity, Transparency, and Passive Growth

Public markets are what most people think of when they hear “investing”: stocks, bonds, and funds traded on exchanges like the NYSE or NASDAQ. They offer:

High liquidity: You can buy or sell at any time.
Regulatory oversight: There’s built-in transparency and compliance.
Diversification: A well-balanced portfolio can help spread risk.

For founders, public investments often serve as a foundation—a way to preserve wealth, maintain flexibility, and let time do the heavy lifting.

But public markets can be emotionally noisy. Headlines, price swings, and day-to-day volatility can distract from long-term strategy. And after years of being hands-on in business, many founders find the passive nature of public investing… underwhelming.

Exploring Private Investments

Access, Influence, and Higher Potential Upside

Private investments—think venture capital, private equity, or direct investments in operating businesses—aren’t traded on public exchanges and usually require accreditation.

For founders, private markets offer something familiar:

Strategic involvement. You can choose to invest in industries you know—and even take an advisory role.
Asymmetrical upside. The right private deal can outperform the public market.
Exclusivity. Many private deals aren’t broadly available, giving you access others don’t have.

But this world also carries unique challenges:

Illiquidity. You may not see a return for years—and it might never come.
Opacity. Less regulation means more homework, and sometimes, more risk.
High minimums and fees. Private funds often require large commitments and long lock-ups.

What About Alternative Investments?

Understanding the Landscape Beyond Stocks and Real Estate

If you’re exiting your business with a significant windfall, chances are someone has mentioned alternative investments. But what does that actually mean?

Alternative investments are asset classes outside traditional public stocks, bonds, or cash. They’re designed to add diversification, reduce correlation to the public markets, and—potentially—deliver outsized returns.

Examples of alternative investments include:

Hedge funds
Private credit / private debt
Real assets like timberland, infrastructure, or farmland
Art, collectibles, and luxury assets
Cryptocurrency and blockchain-based assets

Who Are Alternatives Right For?

These investments often come with:

Higher minimums
Limited liquidity
Complex structures or tax considerations

Because of that, alternative investments tend to be more appropriate for individuals with $2M+ in investable assets and a longer time horizon. If you’ve just exited a business and don’t need immediate liquidity, alternatives can be an effective way to diversify your wealth while pursuing non-correlated or asymmetric returns.

Managed Funds: Opening the Door to Elite Investment Access

Why High Net Worth Investors Get a Different Set of Opportunities

When your investable assets cross the $5M+ threshold, you enter a different investment universe—one where elite managed funds become available.

These funds often require:

Accredited or qualified purchaser status
Minimum investments of $1M+
Longer lock-up periods

But in exchange, they provide:

Access to institutional-level strategies: think private credit, opportunistic real estate, structured notes, or long/short equity.
Boutique fund managers with specialized expertise and proven track records.
Enhanced diversification and sometimes better risk-adjusted returns than standard retail options.

These funds typically aren’t advertised, and access often comes through advisory relationships or private wealth networks. If you’ve just sold a business, working with a firm that understands this space—and has access—is key to leveraging the full advantage of your new wealth tier.

How Founders Should Think About Risk and Reward

Post-Exit Wealth Needs a Different Strategy

You’re no longer investing to build your net worth—you’re now investing to protect, grow, and deploy it.

Some key questions to ask:

Do I want to be hands-on or hands-off?
How important is liquidity in the next 3-5 years?
Do I want to back other founders or stick with diversified markets?
Am I ready for a multi-decade investment horizon—or do I want near-term results?

For many business owners, the answer lies in a hybrid approach: using public markets for stability and flexibility, while selectively adding private opportunities that align with their expertise and values.

Align Strategy With Your New Identity

As we’ve said before, wealth accumulation is about concentration, wealth preservation is about diversification. Your money now needs to work as hard and intentionally as you did in your business. That starts with choosing investment paths that support your life after exit.

Talk to Someone Who’s Advised Founders Like You

At Archipelago Wealth Management, we work with founders at the inflection point—before, during, and after their strategic business exit. Whether you’re thinking about the future 5 years down the road, testing the waters or fielding offers, we help you think beyond your business sale.

Because your next chapter should be as intentional as the one you just finished.