Private Equity Investing

The ability to invest in private equity with your IRA is yet another perk to opening a self directed IRA with New Direction. Freedom to invest in alternative assets allows our clients to bring balance to their IRA  investments, which have traditionally been dominated by the securities market. If you have knowledge and experience in private equity investing or have always been interested in investing your IRA funds in private equity, a private equity IRA could be an excellent way to diversify your retirement portfolio.

The ability to invest your self directed IRA funds in private equity requires holding an account with an IRA administrator that has the capacity to manage the bookkeeping of your alternative assets. Many financial institutions that promote self directed IRAs only allow their account holders to invest in assets that their institution can easily access, or assets that provide their employees with commission (e.g. stock brokers). Through New Direction IRA, a self directed precious metals IRA allows you, the investor, to choose from an almost limitless array of alternative assets – including private equity investing.

Once your private equity IRA is established with New Direction, you may direct us to invest your IRA funds in any qualifying private equity opportunity you choose, providing it falls within IRS guidelines.

As with any IRS-related pronouncement, there are exceptions. When purchased, private equity become an asset of your self directed private equity IRA. In addition:

• Neither you nor any disqualified persons may have previously owned the private equity purchased by your self directed IRA.
• You must ensure that your intended purchase is not a prohibited transaction.
• A prohibited transaction involves the improper use of your IRA or Qualified Plan holdings by you or any disqualified person. A disqualified person is any member of your immediate family (except siblings), employers, certain partners, fiduciaries, and other categories specified in the IRS code.
• The private equity must be for investment purposes only.

For more information about private equity investing, please consult New Direction’s Private Equity webpage.