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Pensco debuts crowdfunding network to help wealthy invest in private equity

posted Aug 8, 2014, 2:39 AM by Siamak Ebarhimi

San Francisco-based Pensco Trust Co. said Wednesday that it created a marketplace for individual investors wanting to invest retirement funds in private equity investments.
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The Pensco Marketplace is a network of providers, products and services for so-called alternative-asset investors.

The company's crowdfunding site initially features San Francisco-based CircleUp, FundRise, HealthiosXchange, I-Bankers Direct, Onevest's Rock the Post and Zanbato.

Pensco's new service also includes information on professionals such as attorneys and accountants that specialize in assisting investors in alternative investments.crowdfunding advertising

The creation of Pensco Marketplace leverages the firm's knowledge of this area of investing and what qualifies under IRS rules for investments that can be held in Individual Retirement Accounts and similar tax-favored retirement plans. Pensco will continue to play the role of custodian for people putting retirement savings into qualifying alternative investments, without passing judgment on the merits of those investments.indiegogo marketing

"Our goal is to be the go-to resource for individual investors and their advisers who want to hold alternative assets in their retirement accounts," said Kelly Rodriques, Pensco's CEO. "Whether it is seeking a private placement opportunity in the expanding crowdfunding space, or using IRA funds to invest in a condominium or office complex, we will make it possible for investors to find the resources they need to help meet their long-term investment goals."

Pensco is confident that more investors will look to crowdfunding and private equity to meet their financial goals.

"As more of these platforms come to market, we want to provide exposure to these investments," Rodriques said.kickstarter marketing

Pensco and other Bay Area companies that are making it easier for wealthy individual investors to get a piece of the action when it comes to private equity, real estate and other alternative investments was the topic of a recent San Francisco Business Times cover story.

What's driving individual investors' growing appetite for private equity was discussed in the current issue of Fortune magazine, with writer Dan Primack looking at Uber and other companies staying private longer. As a result, these companies' early years of growth creates wealth for a smaller pool of investors. He cites Uber's latest financing in which Fidelity Investments and others poured $1.4 billion into the five-year-old car-hailing service at a valuation of more than $18 billion.kickstarter project

Primack calls on Uber and other entrepreneurs to take their companies public — for the good of the public, given the phenomenal wealth companies such as Amazon, (NASDAQ: AMZN) America Online (NYSE: AOL) and Google (NASDAQ: GOOG) (NASDAQ: GOOGL) created in their early years as public companies. Individuals with just a few hundred dollars to invest were able to participate in those success stories.

"How much value could a public Uber have created for a much wider swath of individual investors in the same amount of time?" Primack asked. "How many people might have had an easier time paying the rent in San Francisco?"crowdfunding websites

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By David Khorram