Private Equity IRA

The purchase of securities represents an ownership interest in the company issuing the shares. These shares are typically made available to a limited number of investors through a private offering, but many of those raising money are unaware that you can use retirement funds to invest in private equity.

A Private Equity IRA consists of an investment in the securities of a privately held enterprise.

For most privately held companies, the need is small enough that a loan might be all that is required. Some businesses will get loans through a bank, but what about those companies that don’t qualify for bank loans or choose not to tie themselves to bank requirements? Where do they find the money to get started or to expand?

As a Self-Directed IRA holder, you can choose a company you’d like to invest in and, after agreeing to terms, direct us to send money from your account to complete the investment.

Opportunity and information have led to the increased popularity of the Private Equity IRA in our industry. There is now much more of an entrepreneurial spirit than in generations past, and information about businesses, industries and product offerings is more accessible than ever.

New business startups and established businesses improving infrastructure or wanting to raise capital for expansion create opportunity for Private Equity IRA investments. The common thread is the need to raise capital for operations, equipment, land, buildings, etc. For larger companies, this might mean a full-fledged public stock offering on Wall Street. However, many investors consider companies on Main Street and thereby invest in people they may know and already do business with.

Kingdom Trust cannot promote or endorse any specific investment, but because we are a non-fiduciary trust company, you can use a Private Equity IRA to invest in a number of different types of enterprises, including C corporations, limited liability companies, limited partnerships and joint ventures. Keep in mind that these investments can be made in existing as well as startup enterprises.

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