Where to Put Capital in 2026? Here’s How We’re Thinking About It

As we head into a new year, one question keeps coming up from investors we talk to:

“Where should I be placing capital right now?”

The market’s not easy to read—headlines are mixed, rates remain uncertain, and many asset classes are still resetting. But while uncertainty can be paralyzing, it can also be clarifying.

Here’s how we’re thinking about capital allocation in 2026—and where we believe the smartest moves are being made right now.

Stability First: Income You Can Count On

In uncertain markets, the best first question isn’t “Where can I get the highest return?”

It’s: “Where can I get stable, tax-efficient income with downside protection?”

That’s the role our Tamarack Private Credit Fund is designed to play.

• 9–12% net yield, distributed quarterly
• Collateralized by real estate equity, primarily multifamily
• Tax-advantaged structure with depreciation passthrough
• Low volatility, no daily pricing, and no dependence on market sentiment

This fund has become a core income vehicle for many of our investors, especially those rotating out of bond funds or looking for yield alternatives that aren’t tied to public markets.

Upside Exposure: Why 15%+ Targeted Returns Still Make Sense

While income and stability matter, growth and compounding still belong in the portfolio. That’s why we continue to invest—and co-invest—in multifamily syndications with a value-add strategy.

Why multifamily syndication?

• Targeted IRRs of 15–18%+ over a 3–7 year hold
• Strong rent fundamentals in well-selected secondary markets
• Forced appreciation through renovation, management, and re-tenanting
• Optionality through refi events and market timing

It’s not a replacement for income-focused strategies like credit—but it’s a powerful complement. Together, they create balance: income now, upside later.

Why We Remain Long on Real Estate—Especially Multifamily

There’s plenty of noise around real estate risk, but fundamentals tell a different story. We’re not in an overbuilt market. In fact, the structural forces behind multifamily demand remain intact—and they’re not going away.

Here’s why we’re confident over a 5-year horizon:

• Underbuilt market: The U.S. still faces a multi-million unit housing shortage. New construction simply isn’t keeping pace with population and household growth.
• Low starts: High construction costs and tight capital markets have drastically slowed new multifamily starts—particularly in workforce housing.
• Labor constraints: Trades are understaffed and aging, which continues to delay new inventory across markets.
• Interest rate lock-in: Homeowners with sub-4% mortgages aren’t moving. That “lock-in effect” is keeping for-sale inventory tight and pushing would-be buyers into the rental market.
• Demographic pressure: Millennials and Gen Z are the largest renter cohorts in U.S. history—and many are still forming households. Even if interest rates fall, home prices are likely to rise, pricing out large portions of these generations and sustaining long-term rental demand.

Put simply: even in a rate-reset world, the affordability gap remains—and rental demand will follow. That’s why we continue to believe multifamily is one of the most resilient, supply-constrained asset classes for the next 3–5 years.

Final Thought: Capital Follows Confidence

You don’t need to pick a side—yield or upside, credit or equity.

The smartest portfolios are finding ways to blend both.

At Tamarack, that’s how we’re positioning for 2026:

• Private credit for steady income,
• Value-add multifamily for tax-advantaged upside,
• And real estate as a long-term hedge against inflation, volatility, and uncertainty.

If you’re thinking through where to allocate in the next 12 months, we’d love to talk strategy with you.