Trending Topics Categories: Wealth planning

The Power of Compounding: How Liquid+ Delivers Higher Returns

When it comes to building wealth, how much you earn matters — but how your returns grow over time matters even more. This is where compounding comes in.

What Is Compounding?

Compounding is the process of earning returns on both your original investment and on the returns you’ve already earned. It’s how your money starts to work for you — and then your returns start working for you too.

The result? Growth that accelerates over time.

Simple return pays you on your original capital.

Compound returns pay you on your capital plus past earnings.

Why It Matters for Cash Investments

Most traditional saving accounts or money market funds offer low yields and simple return — meaning your money grows slowly, if at all.

Liquid+ was built to change that.

How Liquid+ Offers Higher Returns

Liquid+ invests your cash into a pool of short-term, high-yielding money market instruments that historically offer higher returns than traditional savings or fixed-income products.

But we don’t stop there. The returns are:

  • Reinvested automatically — so your earnings start compounding without any effort
  • Accessible with weekly liquidity — allowing you to enter or exit your position on a regular basis
  • Optimized through institutional-grade strategies, traditionally reserved for large investors

This means your cash isn’t sitting idle — it’s working smarter, and harder.

Liquid+ Combines Yield, Liquidity, and Simplicity

With Liquid+, you get:

  • Higher returns than traditional saving accounts
  • Weekly liquidity — you’re not locked in
  • Fully digital onboarding and management
  • Shariah-compliant structure
  • No minimums or capital calls

You don’t have to choose between safety and performance anymore.

What Are Private Markets

Most people are familiar with public markets — where shares of listed companies and bonds are traded daily by millions of investors. But beyond these traditional investments lies a much larger, and often more rewarding, world: the private markets.

What Are Private Markets?

Private markets include investments that are not traded on public venues. These markets span several major asset classes:

  • Private equity: Direct ownership in private companies.
    Example: Investing in companies like SpaceX, Stripe, or ByteDance (TikTok’s parent) before they go public. 
  • Private real estate: Commercial or residential properties that generate income.
    Example: Co-investing in office towers, data centers, or multifamily housing in major global cities. 
  • Private credit: Lending directly to businesses and projects outside the traditional banking system.
    Example: Providing loans to mid-sized manufacturing companies or global logistics firms. 
  • Infrastructure: Long-term investments in physical assets that power economies.
    Example: Airports like London Heathrow, toll roads, or renewable energy facilities.

Unlike public markets — where prices change daily based on news and sentiment — private markets are driven by fundamentals: cash flow, asset value, and long-term growth. This provides more stable pricing and a deeper alignment with real-world value.

Why Private Markets Matter

Private markets aren’t just different — they’re bigger. While public markets (stocks and bonds) represent around $100 trillion globally, private markets now exceed $300 trillion. 

They also outperform. The graph below shows that over the past 15 years, top-tier private market investments have delivered around 5-7% higher annual returns than their public market counterparts — with less day-to-day volatility.

Tanami Is Opening the Door 

Until now, individual investors were mostly shut out — facing large minimums, capital calls, and long lock-ups. 

Tanami is changing that. We give you access to high-quality private market investments with: 

  • No capital calls 
  • No minimum investment 
  • Quarterly liquidity 

This gives you the opportunity to build a smarter, more diversified portfolio — in a simple, digital, and Shariah-compliant way.

Why the Best Investors Choose Funds, Not Single Companies

Investing in private companies can be exciting. The idea of backing the next big success story — the next Stripe or SpaceX — is appealing. But for most individual investors, the smarter and safer approach is to invest through private equity funds instead of directly into individual companies. 

Here’s why.

  1. Diversification Reduces Risk

When you invest in a single private company, your entire investment depends on that one business succeeding. If it fails, you could lose everything. 

A private equity fund, on the other hand, spreads your capital across a portfolio of companies — often across different sectors, stages, and geographies. This diversification lowers the risk that any one company will drag down your overall returns. 

Think of it like this: Would you rather bet on one horse — or back a team of winners?

  1. Access to Better Opportunities

Top-performing private companies are selective about who they let invest. Unless you have deep networks and large capital to deploy, you likely won’t get access to the most promising deals. 

Private equity funds — especially those managed by experienced, top-tier managers — have strong sourcing networks and long-standing relationships. They often gain access to exclusive deals that individual investors cannot reach.

  1. Active Management Drives Value

A fund doesn’t just write a check and walk away. The manager plays an active role in each company — helping with strategy, operations, governance, and exits. 

This value creation is one of the biggest reasons private equity has consistently outperformed public markets over the long run. Individual investors usually don’t have the time, expertise, or influence to drive this kind of change on their own.

  1. Lower Complexity, Higher Oversight

Investing directly in private companies comes with challenges: legal structuring, due diligence, monitoring performance, negotiating exit terms — and more. 

When you invest through a fund, all of this is handled by professionals. They manage the portfolio, monitor progress, and report to you in a transparent and structured way. 

With a fund, you get institutional-grade oversight — without the operational burden.

How Tanami Makes It Even Better 

Tanami gives you access to carefully selected private equity funds — managed by world-class firms — with terms built for individual investors: 

  1. No capital calls: You invest once, and your capital is deployed automatically 
  2. No minimum investment: Start building your private market portfolio with any amount 
  3. Quarterly liquidity: You’re not locked in for 10 years like traditional funds 
  4. Digitally accessible: Everything from onboarding to tracking performance is seamless

Setting Your Investment Goals: Growth or Income?

Before making any investment, the most important question to ask yourself is: What am I investing for?

At a high level, most investors fall into two categories — those looking for growth, and those looking for income. Understanding the difference helps you choose the right strategy and products to match your needs.

What Is a Growth-Focused Investment Strategy?

A growth strategy is about building long-term wealth. You invest in assets that may not pay you today but have the potential to grow significantly in value over time.

Growth-focused investments typically:

  • Reinvest profits to fuel expansion 
  • Aim for capital appreciation (higher asset values in the future) 
  • Are ideal if you have a longer time horizon and can ride out short-term volatility

Examples: Private equity funds, venture capital, growth-stage real estate, tech-focused portfolios

This strategy is often suited for long-term investors, or those who don’t need immediate cash flow from their portfolio.

What Is an Income-Focused Investment Strategy?

An income strategy focuses on generating regular cash flow from your investments — whether monthly, quarterly, or annually. These investments tend to be more stable and predictable.

Income-focused investments typically:
  • Distribute dividends, rent, or interest
  • Prioritize steady returns over high growth
  • Are ideal for investors who want to supplement their lifestyle or preserve capital

Examples: Income-generating real estate, private credit, dividend-yielding funds

This approach works well for investors nearing retirement, or those looking for passive income to support their financial needs.

Can You Combine Both?

Absolutely. Many investors choose a balanced approach — combining growth and income strategies to diversify their portfolio.

For example, you might invest in:

  • Private equity funds for long-term wealth creation
  • Private credit or income-generating real assets for regular cash flow

Your ideal mix depends on your risk tolerance, financial goals, and time horizon.

How Tanami Helps

At Tanami, we offer a range of private market investment options tailored to both goals:

  1. Growth: Access to private equity and long-term real asset strategies 
  2. Income: Products like private credit, infrastructure and real estate and for regular cash flow 
  3. Flexibility: All with no minimums, no capital calls, and quarterly liquidity 

The roadmap below outlines how Tanami’s SmartMatch helps you build a portfolio that aligns with your life in four simple steps — whether you’re focused on growing your wealth or living off it.

Why Private Markets Belong in Every Diversified Portfolio

A strong investment portfolio is like a well-balanced team — each part plays a different role, but together, they deliver better performance. One of the most important — and often overlooked — players on that team? Private market investments. 

For years, private markets were only available to institutions and ultra-wealthy families. But today, individual investors are increasingly adding private market assets to their portfolios — and for good reasons. 

Why Diversification Matters

Diversification is the foundation of smart investing. It means spreading your capital across different asset classes, so you’re not overexposed to any single market, sector, or type of risk. 

Public stocks and bonds — while useful — tend to move together during periods of market stress. That’s why portfolios that rely only on public markets often experience higher volatility and limited downside protection.

The graph below shows where private versus public markets asset classes stand in an 8-year period risk-return relationship. 

What Are Private Market Investments?

Private market investments include a broad range of opportunities outside of public markets, such as: 

  • Private equity: Investing in private companies with long-term growth potential
  • Private credit: Lending directly to businesses in exchange for yield 
  • Real assets: Investing in private real estate and infrastructure. Private real estate investments entail income-generating properties like logistics hubs or residential assets, while infrastructure refers to essential assets like data centers, ports, and energy facilities 

These investments are typically less correlated with public markets and often have a longer-term outlook, making them valuable diversifiers.

The Benefits of Adding Private Market Investments

  1. Enhanced Return Potential
    Private markets have historically outperformed public markets over the long run — especially when accessed through top-tier managers. 
  2. Lower Volatility
    Because private assets are not priced daily, they tend to show more stability and less emotional swings during turbulent times. 
  3. True Diversification
    Private market investments behave differently from public stocks and bonds, helping smooth out performance across market cycles. 
  4. Access to Unique Opportunities
    From high-growth private companies to niche real estate, private markets offer exposure to sectors that public investors can’t easily reach. 

How Tanami Helps You Diversify Smarter

At Tanami, we give individual investors access to high-quality private market investments through a fully digital platform — including: 

  • Private equity: Growth-oriented strategies with long-term upside 
  • Private credit: Yield-focused lending to businesses and projects 
  • Real assets: Stable, income-generating properties across sectors and essential assets with long-term cash flow visibility