Pensco, an alternative asset custodian for self-directed IRA investors, announced on Thursday that CEO Kelly Rodriques revealed some predictions for the upcoming year.
- Democratization of Private Equity Market:
“For the first time in American history, everyday citizens will have the opportunity to invest in startups and pre-IPO companies when Title III of the JOBS Act becomes effective in mid-2016. No longer will private equity be limited to just accredited investors which represent only 3% of Americans. There will be new opportunities for the general population to be involved.”
- $7.6 Trillion in Untapped IRA Market will Game Change Private Equity:
“One in four US households have and IRA representing over $7.6 trillion. Of that, $154 billion of it is invested in “alternative assets” such as private equity through self-directed IRAs. (Now that the self-directed IRA industry is streamlining a historically paper-based process through new technology,) This means there is a huge opportunity for both new and established companies to leverage these funds and fuel innovation across industries.”
- Shaky Markets will Increase Alternative Investing:
“Market volatility will continue to worry retirement investors still scarred by the turmoil of the past few years. This will affect how investors allocate their assets in 2016 as they look for a diversified portfolio that includes alternative assets – those asset classes that are outside the stock market such as real estate and private equity – as opportunity and education will increase IRA investing in Alts.”