Private Placement IRAs
Private Placement is an industry term that's used to describe investments in privately-held entities, like a small business or a large corporation. Private Placements are also referred to as private equity or stock, and they involve limited partnerships, or limited liability companies, also known as LLCs.
This type of investment opportunity is privately offered up by corporations or small businesses as a means to raise capital that's needed to grow business, and develop as a whole. It's important to note that while these types of investments are sought-after and can be lucrative, they are not registered with the Securities and Exchange Commission.
For these businesses that are seeking funding through self-directed IRA owners, it can be beneficial to all involved. Typically, obtaining capital through a self-directed IRA can be much less complicated than going through the traditional loan process, and for the IRA owner, this type of asset has the potential to gain a higher return of investment, as well as diversifying your portfolio.