Private Placements Procedures

What you'll find on this page:

This is an overview of how to file a private placement investment with PENSCO Trust Company and how to prepare to file an investment. Detailed instructions are contained in our Private Investment Kits.

What you need before you start

  • You must have an open account with us
  • The account must have sufficient cash to fund the investment
  • Carefully read all the instructions and use the checklist for all required documents

The forms you'll need to get started

For IRA accounts:

Private Investment Kit – Multi Member (multi-member, non-family controlled companies) Private Investment Kit - Single Member (single-member or family-controlled companies)

For Solo(k) accounts:

Private Investment Kit – Multi Member (multi-member, non-family controlled companies) Private Investment Kit - Single Member (single-member or family-controlled companies)

Each kit has detailed instructions, checklists, and information about additional documentation you may need to provide.

Overview of the process

Action Who is responsible
Print the appropriate Private Investment Kit. You (the accountholder)
Provide the documents from the kit to the entity (e.g., company or investment sponsor) in which you'd like to invest. You

Instruct the investment sponsor to return the completed document along with other required information to you. Use the checklist as a guide for a list of what is required.

Note: Do not have them sent to PENSCO Trust Company.

 You and investment sponsor
Complete the IRA or Solo(k) Non-Public Investment Authorization and Investment Funding Instructions which are part of the kit. You

Fill out the Investor Subscription Agreement and Investor Questionnaire and any additional agreements.

Note: These agreements and documents are provided by the company in which you plan to invest, not PENSCO Trust Company.

 You

Mail the appropriate checklist, all agreements, and any other required documents to PENSCO Trust Company.

Note: Do not email or fax. PENSCO Trust Company requires originals for the initial submission.

 You
Check that all required documents and agreements are in the package you submitted, and that they are registered and signed correctly. PENSCO Trust Company
Review and remediate all documents and notify you whether PENSCO Trust Company can or cannot accept the asset. PENSCO Trust Company

How long the process may take

  • Once PENSCO Trust Company receives a completed package—all documents and agreements—it usually takes 3 to 10 business days to do the administrative review.
  • We cannot start the administrative review process until the package is complete and conforming. There is no administrative review of partial packages.
  • If documents are missing or nonconforming, the process can take from 10 business days to several weeks, depending on when PENSCO receives complete documents.

Top reasons investment funding is delayed

  1. PENSCO Trust Company account is not established and/or not funded.
  2. PENSCO Trust Company account is not adequately funded with cash to cover fees— such as wire transfer fees, asset transaction-related fees, etc. These fees cannot be paid with a credit / debit card or from funds outside of the account.
  3. Package is incomplete—PENSCO forms are incomplete, investor agreements not fully executed, missing company documents, etc.
  4. Investor Agreements is not registered in the name of the IRA with PENSCO's contact information—email, address, phone number, tax I.D.
  5. Company is not duly formed and in good standing with the Secretary of State in the state where the company is domiciled.
  6. Documents are in draft form. The Private Placement department will not review drafts.

How to register the Investor Subscription Agreement from the entity

Remember, it's your IRA or Solo(k) that is investing in the company, not you, so you must name your account wherever the investor's name is required. For example:

"PENSCO Trust Company, Custodian FBO John D. Investor, IRA"
("FBO" stands for "for benefit of")

The investment amount and name of entity must match what you have indicated on PENSCO Trust Company's IRA or Solo(k) Non-Public Investment Authorization form.

This review process does not guarantee that PENSCO Trust Company can accept the asset once your file has been reviewed.