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Offering Employee Co-Investment Through an IRA

A co-investment is a minority investment made directly into a portfolio company alongside the primary private equity fund. While sometimes offered to select LP investors, this can also be an incentive offering made to employees through a specific employee co-investment account.

Added Value for Your Employees

This opportunity can be immensely valuable to employees, allowing them to participate in potentially high profit investments while also giving them access to an asset class that may have otherwise been unavailable to them. These benefits can be further amplified by allowing employees to invest with qualified dollars through a Traditional and/or Roth IRA.

Rest Assured with PENSCO

A self-directed IRA provides individuals the opportunity to co-invest through a tax-sheltered account, increasing the growth potential of the co-investment while also providing diversification for their retirement portfolios. To utilize this option, a specialized custodian like PENSCO is required to custody and report on these accounts.

As a leading alternative asset custodian, PENSCO is uniquely qualified to assist firms seeking to set up an employee co-invest program. PENSCO has three decades of experience holding private equity and other alternative assets within retirement accounts, and currently has nearly $14 Billion in assets under custody—nearly $1 Billion of which is in employee co-investment accounts (as of 12/31/18).

PENSCO works with some of the largest and most widely respected private equity firms in the world to custody their employee co-investments made through an IRA. We work closely with key finance and operations personnel to ensure seamless execution of all aspects related to co-invest accounts, providing a wide array of services that include:

  • Unparalled industry knowledge and expertise
  • Streamlined processing specifically designed for co-invest vehicles
  • Administrative support from a dedicated Relationship Manager
  • Online account management

Learn More about PENSCO's solution for Employee Co-Investment through IRAs

If you're ready to launch an employee co-investment program or need more information give us a call at (855) 453-4960, or complete the form below.