When Ernst and Young named Dr. Bharat Sangani its 2026 Entrepreneur of the Year for the Southwest, it wasn’t just recognizing a track record of deals. It was recognizing his way of thinking. As a trained cardiologist and founder of Encore Enterprises, Dr. Sangani has spent decades building one of the most respected real estate development and investment platforms in the country.

At Ignite, we believe that the line between a great entrepreneur and a great investor is thinner than most assume. The frameworks that build companies, conviction, rigor, urgency, and proximity to the work, are the same ones that build portfolios worth owning. We sat down with him to explore what separates investors who generate real wealth from those who simply participate in it?

Ignite: Before we get into how the two worlds connect, in your own words, how would you define your entrepreneurial mindset?

Dr. Sangani: It really comes down to three things. The first is a value creation orientation. Entrepreneurs aren’t trying to capture a piece of something that already exists. They’re asking how to build something worth more tomorrow than it is today. That means developing the discipline to see what others don’t yet see.

The second is first-principles thinking. Rather than following consensus, entrepreneurs ask why something works the way it does and whether there’s a better way. That habit of questioning assumptions is just as valuable when you’re evaluating where to deploy capital as it is when you’re building a business.

The third is what I’d call calibrated patience. It’s two things working together: knowing which risks are worth taking and which to avoid entirely, and being willing to hold a position on a time horizon most people won’t sit with.

Ignite: You’ve operated on both sides of the table, as an operator building assets and as someone who attracts serious capital. Where do those two mindsets overlap?

Dr. Sangani: More than most people realize. The best investors I’ve worked with don’t just ask “what’s the return?” They ask “what has to go right for this to work, and what happens if it doesn’t?” That’s exactly how a good entrepreneur evaluates a business decision. They’re stress-testing the thesis, not just underwriting the upside. When capital and conviction align, that’s when you see exceptional outcomes.

Ignite: HNW investors often hear that they should “think like an owner.” What does that actually mean in practice?

Dr. Sangani: It means you don’t stop at the investment idea. Ownership means you understand the asset, the market, the team, and the exit before you wire a dollar. Entrepreneurs live with those details every day. Passive investors who adopt that same curiosity and discipline consistently make better allocation decisions. They ask better questions, they hold managers accountable, and they’re less likely to be surprised.

In cardiology we have a principle: measure three times, cut once. You cannot uncut. It also means front-loading your judgment. In private markets especially, you rarely get a chance to course-correct once you’ve committed. Entrepreneurs, and physicians like myself, understand this intuitively because they live it in their businesses: the work you do before a decision has to be good enough to carry the decision forward on its own. That’s a different standard than most investors hold themselves to.

Ignite: What’s the biggest mindset gap you see between entrepreneurs and traditional investors?

Dr. Sangani: I have two answers here. The first is urgency. Entrepreneurs understand that the window on a great opportunity is rarely wide open for long. Capital that moves with conviction captures deals that hesitant capital misses entirely. I’ve watched investors over-deliberate themselves out of transactions that went on to perform exceptionally well.

My second answer is maybe a bit too honest. Entrepreneurship is mostly ordinary days, punctuated by moments of sheer terror. It is not for weak stomachs. And the only thing that carries you through those moments is a deep belief in your thesis and the willingness to double down on a vetted business plan precisely when the macro signals to retreat are everywhere.

Most investors have never had to develop that muscle. When a position gets uncomfortable, their instinct is to look for the exit. An entrepreneur’s instinct is to get closer to the problem. That difference, between doubling down with conviction and retreating with doubt, is where returns are made or lost.

Ignite: What’s your advice for an investor who wants to develop a more entrepreneurial approach to their portfolio?

Dr. Sangani: Get closer to the operators you back. Not just quarterly reports, but real dialogue. Understand what keeps them up at night. Understand the decisions they’re navigating. That proximity gives you better judgment over time, and better judgment compounds just like capital does.

And, also, have a point of view. The most successful investors I know don’t just react to what’s in front of them. They’ve developed a thesis about where value is being created, and they allocate toward it with intention.

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People don’t change their habits as quickly as markets change their minds. They still buy food close to home, move along the same commuter routes, and rely on the same physical infrastructure to keep daily life running. That predictability is where real assets earn their keep.

Encore Enterprises’ newly released strategy playbook is built around that premise. As Ignite’s exclusive sponsor, Encore focuses on asset types where demand is steady and cash flow is driven by repeatable behavior. Below is a distilled look at four alternative investment sectors Encore is prioritizing for 2026, and the logic behind each.

“Some of the strongest investments don’t look good at first glance. They work because they’re necessary, not because they’re pretty.”
— Dr. Bharat Sangani, Chairman & CEO, Encore Enterprises

1. Travel Service Centers & Truck Stops

“Truck stops aren’t discretionary retail. They’re part of the physical economy, tied directly to how goods move across the country.”
— Nili Sangani, Senior VP of Operations, Encore Enterprises

This is one of the purest examples of investing in demand that doesn’t need to be “sold.” Logistics doesn’t pause because markets get choppy. Freight still moves. Drivers still comply with regulated stopping behavior. Fleet relationships still dictate predictable refueling patterns and pricing.

Encore approaches this category as a yield-oriented platform designed to target durable income to help limit volatility. These sites combine scale, repeatability, and diversified revenue streams—fuel, food, retail, and services—while the triple-net structure of the investment favors consistency over complexity.

The appeal is straightforward: it’s real-economy cash flow, connected to essential national infrastructure, expressed through long-duration contractual tenancy rather than discretionary consumer mood.

2. Gas Stations & Convenience Stores

“In a lot of these neighborhoods, the convenience store isn’t optional—it is the grocery store. It’s where people buy food, household items, and everyday essentials. That dependency drives performance.”
— Mike Nelson, President, Encore Commercial

Convenience retail doesn’t win because it’s trendy. It wins because it’s close, consistent, and embedded in daily life.

Encore’s emphasis in this sector is less about reinventing the asset and more about owning the right type of location: existing sites with proven performance, typically in infill or overlooked markets where competition is constrained—and where the store serves as a recurring essential outlet for the surrounding community.

This category also reflects a broader theme: some of the most durable cash-flow opportunities are hiding in plain sight, powered by frequency rather than fanfare.

3. Grocery-Anchored & Open-Air Retail Centers

“The asset class matters less than the lease. If the lease isn’t strong, the deal doesn’t work, no matter how attractive the headline sounds.”
— Mike Nelson, President, Encore Commercial

Grocery-anchored retail isn’t exciting—and that’s often the point.

These assets tend to function as portfolio stabilizers, supported by necessity-based tenancy, steady foot traffic, and a development environment that has become structurally constrained as new retail supply remains limited.

Encore’s approach is notably disciplined. Brand recognition alone doesn’t justify an investment. Immediate yield matters. Return thresholds matter. In this category, “institutional quality” can quickly become a liability if investors overpay for comfort and underwrite away the return.

In practice, that discipline has meant walking away from high-quality, marquee portfolios when projected returns failed to meet target levels. It reinforces a core tenet of the strategy: selectivity matters more than scale.

4. Drive-Thru Coffee Franchise

“You don’t need 2,500 square foot store to generate $2.5 million in annual sales.”
— Dale Doerhoff, President, Encore Restaurants

If the other categories are built around stability, Encore’s drive-thru coffee franchise business, 7 Brew, represents the growth edge of the same framework: small-format real estate paired with high-frequency consumer behavior.

The model is engineered for repetition through speed, convenience, and throughput. And while it sits inside the consumer economy, it behaves less like discretionary dining and more like habit-driven purchasing.

Encore’s focus here reflects a modern reality: the most valuable investment isn’t always the largest footprint, but the most efficient conversion of traffic into transactions.

Across these four sectors, the strategy is consistent: focus on the parts of the economy that still move, still transact, and still repeat, even when markets get loud. The goal isn’t to predict the next cycle. It’s to build portfolios that don’t require you to.

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The past year reminded investors of something easy to forget in calmer markets: cycles do not turn on schedule, and clarity rarely arrives when you want it. In 2025, interest rates stayed higher, transaction markets remained uneven, and headlines changed faster than fundamentals.

Within private markets and cash-flow-oriented investments, those conditions reshaped how experienced operators and allocators approached risk. Rather than chasing momentum or short-term valuation swings, capital was deployed with an emphasis on protecting income, strengthening operations, and preserving flexibility.

From Ignite’s perspective, several clear signals emerged from how capital was actually deployed across real assets, operating businesses, and private credit last year. These are not universal rules for every asset class, but they offer a useful framework for investors focused on durable cash flow and long-term capital stewardship as we move into 2026.

1. Cash Flow Matters More Than Perfect Timing

In past cycles, returns were often driven by well-timed exits. Today, that playbook is less reliable. Buyers are cautious, financing is selective, and pricing expectations don’t always line up.

What worked in 2025 was a renewed focus on steady, predictable cash flow. Refinancing debt, lowering interest costs, and improving liquidity helped stabilize returns even when asset sales weren’t attractive. Rather than forcing exits, many operators chose to strengthen income while waiting for markets to normalize.

For investors, the takeaway is simple: in this environment, dependable cash flow can matter more than guessing when the exit window will reopen.

2. Strong Operations Are Now a Key Form of Risk Protection

When capital is expensive, mistakes show up quickly. Assets that required hands-on management, especially hotels and newer multifamily properties, benefited most from active oversight.

What stood out in 2025 wasn’t just performance, but responsiveness. Underperforming assets were addressed directly through management changes, pricing adjustments, and targeted improvements. The goal wasn’t to chase upside, but to protect downside.

This highlights an important distinction for investors: there is a difference between owning assets and operating them well. In tougher markets, that difference becomes meaningful.

3. Essential, Everyday Businesses Continue to Attract Capital

While some sectors stalled, others quietly kept performing. Assets tied to daily needs, convenience retail, travel centers, healthcare services, and similar businesses continued to show resilience.

These investments share a few common traits: consistent demand, simpler operating models, and less reliance on economic optimism. In many cases, long-term leases and essential services helped provide stable income even as broader markets slowed.

For high-net-worth investors, this isn’t about being overly defensive. It’s about recognizing where demand tends to hold up, regardless of headlines.

4. Patience Is an Active Decision, Not a Lack of One

Extended holding periods can be frustrating, but in 2025 they often reflected discipline rather than delay. Selling assets into uncertain pricing environments rarely rewarded urgency.

Instead, many operators focused on preparing assets, improving operations, validating performance, and staying ready for when conditions improve. That meant making progress without forcing outcomes.

The lesson here is straightforward: time alone doesn’t create risk. Poor timing does. Waiting with purpose can be just as strategic as acting quickly.

5. Private Credit Is Becoming a Core Part of the Toolkit

One of the most notable shifts in recent years has been the growth of private credit. As banks pulled back, private capital stepped in, often with more flexible structures and clearer alignment.

Revenue-based funding and private lending strategies gained traction in 2025 because they offered access to cash-flowing businesses without relying on asset sales or aggressive leverage. Importantly, many of these strategies were tested internally before being offered more broadly, reinforcing a focus on proof over promise.

For investors, private credit is no longer a niche idea. It’s increasingly a practical way to stay invested and generating income when traditional markets slow down.

Looking Ahead

None of these signals suggest dramatic change. Instead, they reflect a market that rewards discipline, operational strength, and patience. In this part of the cycle, success has less to do with bold forecasts and more to do with doing the fundamentals well, day after day.

From Ignite’s perspective, the investors and operators best positioned for 2026 are those focused on cash flow, downside protection, and flexibility. Those qualities may not generate headlines, but they tend to hold up when markets test convictions.

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