If your firm is raising capital, you can employ strategies to include accepting investments from self-directed IRAs. This allows your clients to use not only personal funds but also retirement funds to participate in your offering. Your firm might be a great fit if you are a private fund manager, a crowdfunding platform, a privately held company issuing stock and/or debt, a hedge fund or venture capital firm.
“I didn’t even know that was allowed.”
That is the most common response we receive when speaking with new investment sponsors about permissible alternative investment types that can be held by a self-directed IRA. Since most investors are waiting until qualified retirement age to distribute funds from their IRAs, alternative assets – which can typically require longer holding periods – can be a great fit for self-directed IRA owners.
With the aging of the baby boomer generation, we anticipate several trillion dollars being rolled over from qualified retirement plans into IRAs. If you already have a pool of investors, it may be beneficial for you to educate your clients on the use of their self-directed IRAs to invest in offerings they understand – yours.
Midland Trust can help you on two fronts: we are a responsive partner who is available to answer questions you receive from your clients and our account set-up process is fast and easy.
We can help you with IRA specific questions your potential investors have about your investment and we never compete with you because we do not sell investments. We can also provide you with marketing materials to send to your investor pool about self-directed IRAs. A huge part of what we do at Midland day in and day out is educate people on the rules, the process and the roles of everyone in self-direction.
Once your client chooses to use IRA funds, Midland can get their account set up and request funds within two business days. You might also be able to use our OnePath platform for your documentation, making the process easy for you and your clients.
OnePath can be used for certain types of investments to provide Midland with all of the investment documentation just once. We then provide you with a unique link to send to your investors. It is pre-filled in with your investment details and only requires that clients add their own information to open and fund their account. We have found this seamless process works for everyone involved.
For more information about using IRA funds to raise capital, contact the Midland sales team at 239-333-1032.