Private Equity Investments and Your Self-Directed IRA

At the end of Q2 2013, private equity investments in the United States were valued at approximately $71 billion. That is a lot of money, and most comes from investors just like you. In fact, private equity is one of the many ways to generate a passive income with your Self-Directed IRA.

What are private equity investments?

If you have a Self-Directed IRA, then you know that you can invest in a lot more than just stocks and bonds. You can invest in real estate, precious metals or private equities. Simply put, private equity monies are investments in companies that are not publicly traded. These investments usually give smaller companies the chance to work towards expansion, develop new products and restructure the company when necessary.
Most people think only independently wealthy individuals can invest in private companies, but many “angel investors” are actually people just like you who choose to invest with their Self-Directed IRA.

Like any good investor, you are going to want to know what the potential return on investment might be in this arena. Because there are so many different kinds of private equity investments, it is hard to compare them and gather data. However, there was a study published that suggested that the rate of return was comparable to those on publicly traded investments.
Direct investments made by private equity firms have a multiplier effect as the companies in which they invest hire workers, invest in research and development and pursue new products. In short, private equity investment drives significant economic activity across the U.S.

If you want to know more about private equity investments, several organizations provide free, impartial information.

Check out these websites:
Harvard Business School offers advice on how to gather information on possible investments.
The Private Equity Growth Capital Council has a great website with a lot of information to help you understand the ins and outs of private equity investing.
The Tuck School of Business at Dartmouth has a page dedicated to research and information that can be very helpful.

For more information on how you can discover your IRA investing alternatives, download this FREE Self-Directed IRA report: “The Truth about IRAs Revealed.”

Get it here:

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About J.P. Dahdah

CEO at Vantage Self-Directed Retirement Plans. Mr. Dahdah earned the Certified IRA Services Professional (CISP) designation by The Institute of Certified Bankers in 2007, and in 2009, he began hosting a weekly “Wealth Wednesdays” radio show on Arizona’s premiere financial news station, KFNN 1510AM. In that same year, the Arizona Small Business Association (ASBA) presented Entrust Arizona with “Arizona’s Companies to Watch” Award, an honor celebrating second-stage entrepreneurs. Experiencing an annualized revenue growth of 28%, Entrust Arizona’s client base grew to over 6,500 clients and $600M in retirement assets in less than seven years. A testament to the Company’s size, strength, and growth, Entrust Arizona re-branded and changed its business name to Vantage Retirement Plans, LLC, on January 3rd, 2012.

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