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What types of private equity can I invest in with my STRATA account?

Permitted private equity investments 

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

  • Private company or startup stock
  • Venture capital investments (early-stage and high-growth companies)
  • Bank capital raises or de novo bank investments
  • Growth or expansion capital in an existing private business
  • Acquisition or buy-in to a private company
  • Private investment funds, including hedge funds
  • Real estate investments held through an entity (such as an LLC or syndication)
  • Energy or oil & gas investments structured through a private entity
For documentation requirements, refer to STRATA’s Private Equity Investment Checklist. 

Private equity types not permitted

Certain private equity investments or structures cannot be processed or held, including:

  • Transactions that would be considered prohibited under IRC §4975 (e.g., self-dealing)
  • Entities owned 50% or more by you or disqualified persons (including family members)
  • S-corporation stock
  • General partnerships or joint ventures where the IRA owner has disqualifying involvement
  • Investments tied to prohibited assets (e.g., collectibles or life insurance)

STRATA also does not custody certain private investments, including:

  • Foreign entities not supported by STRATA
  • Direct investments in restricted industries or structures outside custody capabilities

Important Reminders

Private equity investments must be structured and executed in a way that complies with IRS rules. Transactions involving disqualified persons or improper benefit to the IRA owner can result in penalties or loss of tax-advantaged status.

For example, if you—alone or together with family members—own 50% or more of a company and direct your retirement account to invest in that business, the transaction would generally be considered prohibited due to disqualified person involvement and control.

.Before investing, review STRATA’s Rules and Regulations page and ensure you understand the definition of a disqualified person. STRATA does not provide tax or legal advice. Consult a qualified professional regarding your specific situation.