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PENSCO: Top 10 States For Private Equity Investments

California, Texas and Florida Rank Highest, But List Includes Surprises

SAN FRANCISCO – The nation’s largest states account for the greatest concentration of private equity investments held in retirement accounts, but those with large populations of technology workers and retirees also top the list, according to PENSCO, the nation’s premier alternative asset custodian specializing in retirement accounts.

PENSCO, whose clients hold $5 billion in private equity investments in retirement accounts, identified the following top 10 states for private equity held in retirement accounts: 1. California; 2. Texas; 3. Florida; 4. New York; 5. Colorado; 6. Arizona; 7. Illinois; 8. Washington; 9. New Jersey; 10. Pennsylvania.

The top 10 metropolitan areas are 1. Los Angeles-Long Beach (CA); 2. San Francisco (CA); 3. Oakland (CA); 4. Orange County (CA); San Jose (CA); 6. New York City (NY); 7. Chicago (IL); 8. Houston (TX); 9. Denver (CO); 10. Riverside-San Bernardino (CA).

“California tops the list because of its size and history of incubating technology companies, but less populous states, such as Colorado, Arizona and Washington, also have a significant amount of private equity held in retirement accounts,” said PENSCO CEO Kelly Rodriques. “Given that federal and state taxes on individuals are increasing, it makes more sense than ever to make a private equity transaction from funds in a qualified retirement account to realize the significant tax advantages.”

Private equity includes investments in privately held companies and private equity funds, as well as hedge funds, Limited Liability Partnerships (LLPs) and Limited Liability Corporations (LLCs).

PENSCO said private equity is the fastest-growing asset class held by its clients in retirement accounts followed by real estate, unsecured notes, secured notes and precious metals. Private equity investments held at PENSCO have grown 5% over the past 12 months and 10% over the past six months due to asset inflow and appreciation.

“Many investors are unaware that they can put private equity, private stock and real estate into a retirement account, subject to government rules for holding those investments,” Rodriques said. “In fact, holding high potential investments in a retirement account is one of the best ways to build wealth, generate income or both.”

About PENSCO *

PENSCO Trust Company is the nation’s premier alternative asset custodian specializing in retirement accounts. Founded in 1989, PENSCO provides investors and their advisors with a comprehensive suite of custody services for direct investments in real property, private equity, notes, precious metals and other assets not traded on public exchanges. At PENSCO, assets can be held in a Traditional IRA, Roth IRA, SEP-IRA, Solo(k) and other types of qualified plans. A regulated banking company, PENSCO has more than $10 billion in assets under custody and 50,000 client accounts. In addition to serving individual investors, PENSCO works with Registered Investment Advisors, financial planners, family offices, accountants, attorneys, and others seeking a retirement account custodian for their clients. Visit www.pensco.com

*PENSCO Trust Company performs the duties of an independent retirement custodian, and, as such, does not provide investment advice, sell investments or offer any tax or legal advice. Potential clients are advised to perform their own due diligence in choosing an attorney, tax advisor, or any investment opportunity. Alternative investments are not FDIC insured and are subject to risk, including loss of principal.