Private Equity is a term that refers to investing in privately-held entities, such as companies or small businesses. Banks have recently tightened their purse strings when it comes to lending to these entities, creating a higher demand for development capital from investors.
For those seeking funds, obtaining capital from a self-directed IRA owner can be simpler and faster than the loan process with institutional lenders. For self-directed IRA owners, this type of lending has the potential to bring higher returns than the stock market or CDs.
Providing private loans to businesses is an allowable way to diversify your retirement portfolio. Your self-directed IRA can invest in:
To learn more about the different ways your IRA can invest in private placements, or to make a private placement investment, please contact us today.
Disclaimer: Before you invest in this business sector using your IRA, it is best to consult with your investment, legal and tax advisor. Entrust does not endorse or recommend any of these investments. Proper due diligence by you the IRA holder is recommended before entering into any transaction.