Self-Directed IRA Private Placements
Be early, and build wealth in private placements that are not available to the public.
Self-directed IRAs allow you to invest in private placements not available to the general public, including private shares, limited partnerships, hedge funds, real estate syndications, and early-stage ventures.
These exclusive investment opportunities often offer stronger earnings potential, especially when coupled with the tax benefits of a Roth SDIRA.
Horizon Trust allows you to invest in private placements with any self-directed account, including Traditional and Roth IRAs, SEP IRAs, SIMPLE IRAs, and Solo 401(k)s, and stay compliant to avoid harsh penalties.
Why Invest in Private Placements with a Self-Directed IRA
- Tax-advantaged growth: Your private placement investments can grow tax-deferred (Traditional IRA) or tax-free (Roth IRA), maximizing your long-term earnings.
- Access exclusive deals: Private placements offer access to early-stage or institutional-grade investments that are typically off-limits to public investors.
- Diversify your portfolio: Private placements are not tied to stock market volatility, helping you create a more balanced and resilient retirement strategy.
- High potential returns: When managed wisely, private placements can offer exceptional upside potential with compounding benefits over time.
Diversify Beyond Public Markets
Holding private placements inside a self-directed IRA allows long-term growth to compound tax-deferred or tax-free.
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What Are Private Placements?
Private placements are non-public investment offerings in which companies raise capital directly from investors rather than through public stock exchanges.
These offerings often take the form of private equity shares, limited partnership units, or promissory notes issued under exemptions from SEC registration, such as Regulation D offerings.
With a self-directed IRA (SDIRA), you can use tax-advantaged funds to participate in these private offerings. This enables you to grow your retirement savings through non-traditional assets with the potential for higher returns and greater control.
Types of Private Placement Investments Eligible for a Self-Directed IRA
With a self-directed IRA, you can invest in a wide range of private placement opportunities, including:
With a self-directed IRA, you can invest in a wide range of private placement opportunities, including:
- Private LLCs and LPs (Limited Partnerships)
- Private Equity and Venture Capital Funds
- Real Estate Syndications and Development Groups
- Private REITs and Hedge Funds
- Convertible Debt or Promissory Notes
- Private Corporate Offerings under Regulation D
Each investment carries unique risk and reward factors, so thorough due diligence is essential before committing IRA funds.
Invest in Private Placements with a Self-Directed IRA in 4 Easy Steps
Follow these steps to start investing in private placements through your Horizon Trust SDIRA:
At Horizon Trust, we believe in turning dreams into reality. Founded by Greg Herlean, who has masterfully managed over $1.3 billion in real estate transactions, our mission is to empower you to take control of your financial destiny using the tax-free advantages of a Self-Directed IRA. Retire wealthy.
Here’s how it works:
STEP 1
Open and Fund Your SDIRA
Work with Horizon Trust to establish and fund your self-directed IRA. You can transfer or roll over funds from an existing IRA or 401(k).
STEP 2
Select a Private Placement Opportunity
Choose an offering that fits your investment goals. Review offering memorandums, management teams, and business models before investing.
STEP 4
Manage and Grow Your Investment
All income and returns generated by the investment must stay within the SDIRA to maintain its tax advantages. Withdrawals can be made once you reach the eligible retirement age or for certain qualified purposes.
STEP 3
Submit the Investment for Custodian Review
Horizon Trust will review the documents to ensure compliance with IRS and custodial requirements.
Disclaimer
Horizon Trust Company is an independent passive Custodian and is not associated or affiliated with and does not recommend, promote or advise any specific investment, investment opportunity, investment sponsor, investment company or investment promoter or any agents, employees, representatives or other of such firms or entities. Investments are not FDIC Insured, offer no bank guarantee and may lose value.
Diversify Beyond Public Markets
Holding private placements inside a self-directed IRA allows long-term growth to compound tax-deferred or tax-free.
Learn About Self-Directed IRA Private Placements
Key Rules for Private Placement Investing with a Self-Directed IRA
To preserve your account’s tax-advantaged status, it’s critical to follow IRS guidelines for self-directed private placements. Key rules investors need to be aware of include:
- You cannot invest in any company owned or operated by a disqualified person, including yourself, certain family members, or any entities they control.
- All earnings and expenses must flow directly into or out of your SDIRA — not personal accounts.
- Your SDIRA cannot hold prohibited assets, such as life insurance or collectibles.
- If your private placement investment is financed with debt or involves an active trade or business, Unrelated Business Taxable Income (UBTI) rules may apply.
Failure to follow these rules can lead to penalties, taxes, or account disqualification.
How to Rollover or Transfer Funds into a Private Placement SDIRA
You can move funds from an existing retirement account into your Horizon Trust self-directed IRA to invest in private placements without penalty.
The process is easy and can be completed in one of two ways:
- Transfers: Move funds between like accounts (e.g., Traditional IRA → Traditional SDIRA) directly and tax-free.
- Rollovers: Move funds from an employer-sponsored plan (like a 401(k)) into your SDIRA. You can choose between a direct rollover (funds sent directly to Horizon Trust) or an indirect rollover (you take possession and redeposit within 60 days).
Horizon Trust specialists can help guide you through the process to ensure compliance and smooth funding.
Managing Unrelated Business Taxable Income (UBTI)
If your private placement investment generates business income or uses debt financing, you may be responsible for Unrelated Business Taxable Income (UBTI).
UBTI doesn’t eliminate the benefits of using an SDIRA, but it does require careful management and accurate reporting. Consult with a qualified tax professional to understand your potential obligations and structure your investments efficiently. If your investment is subject to UBIT, you must file Form 990-T with the IRS.
Proven Success. Trusted Leadership. Real Impact.
At Horizon Trust, we make it simple to open and manage a Self-Directed IRA, so you can take control of your retirement on your terms. Founded by Greg Herlean, who has overseen more than $1.3 billion in real estate transactions, Horizon Trust was built by someone who understands what self-directed investors need: personalized service, fast transactions, and a custodian that stays out of your way.
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