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What is the pre-custody process for private equity investments?

Prior to accepting custody of an investment, STRATA Trust Company (“STRATA”) completes a pre-custody check to make sure we can meet our custodial responsibilities and the administrative requirements of the investment. 

Quik Links: Self-check | Pre-custody documents | Timeline | Next steps


Self-check

Your STRATA self-directed retirement account may invest in many types of private equity, provided the investment complies with IRS rules.

STRATA Trust does not evaluate or perform any due diligence or suitability reviews on any investment or investment sponsor. 

STRATA is unable to process transactions involving prohibited transactions or disqualified persons, including, but not limited to:

  • Investments that would be considered prohibited transactions (e.g., self-dealing) under IRC §4975
  • Investments in entities owned 50% or more by you or disqualified persons (including family members)
  • Transactions that provide a direct or indirect personal benefit to the IRA owner or disqualified persons

Examples of prohibited transactions in private equity

  • Investing your self-directed account in a company you or your family own or control
  • Receiving compensation (salary, fees, or other benefits) from a company your STRATA account invests in
  • Using your investment to personally guarantee a loan or obligation of the company
  • Structuring the investment in a way that shifts personal expenses or liabilities to the STRATA account

Quik Links: Self-check | Pre-custody documents | Timeline | Next steps


Pre-custody documents  

To onboard your investment, the issuer will need to submit STRATA's Private Investment Issuer Representation Letter. Visit STRATA's Investment Onboarding page to get started. 

During the form submission process, the investment issuer will need to provide the following documents that reflect the investment registered to your IRA:

  • Offering documents - Private placement memorandum (PPM), offering circular, operating agreement, limited partnership agreement, bylaws, blank subscription documents, and/or any related materials
  • Company formation documents - Provide a copy (with the filing stamp) of the Articles of Incorporation, Certificate of Limited Partnership, Articles of Organization, Certificate of Formation, or other similar corporate filings.

Investment registration

The STRATA account will own the investment and the individual. All investments must be registered in the name of the accountholder:

  • STRATA Trust Company Custodian | FBO (Accountholder Name) Account (#)

  • Using STRATA’s Tax ID (26-2637994) in place of your Social Security Number helps maintain the tax-advantaged status of your IRA investment.

Quik Links: Self-check | Pre-custody documents | Timeline | Next steps


Timeline

Processing timelines are approximate and depend on receiving all required documents in good order.

  • Pre-custody review typically takes 2–3 business days once documentation is complete
  • Transfers or rollovers from another custodian may extend timelines based on third-party processing

STRATA may request additional documentation as needed to complete the review.

Quik Links: Self-check | Pre-custody documents | Timeline | Next steps


Next steps

Once your pre-custody documents have been submitted and your investment is approved, you’re ready to open and fund your STRATA account and move forward with your investment. Visit our Get Started page to open and fund your account. You’ll be able to:

  • Select the account type you want to invest with
  • Assign beneficiaries
  • Electronically sign and submit required forms

Step-by-step guide: Download STRATA's Private Equity Investment Checklist for a guided, streamlined investing experience.