New Partnership Will Allow Deal Sponsors to Raise Additional Capital and Help Individual Investors Participate in Private Markets Using Their Retirement Funds
Alto Solutions, Inc. (Alto), the next-generation self-directed IRA platform that makes it easy to invest in alternative assets using retirement funds, announced today a partnership with Assure, the leading provider of outsourced administrative and transaction services for the private investment marketplace. This new partnership will enable deal sponsors who are raising capital to invest in startups and other private opportunities through Assure to seamlessly accept IRA capital using Alto’s platform.
Assure works with thousands of fund managers to raise capital for angel and private asset investments through special purpose vehicles (SPVs). Assure’s fast and affordable SPVs decrease traditional administration costs by over 90%. As SPVs become an increasingly popular way to raise capital for a single investment through multiple sources, this partnership with Alto opens up a new funding source for deal sponsors by allowing IRA capital into their deals.
“The majority of household investable assets today are held in retirement accounts, and the growth in IRAs is expected to continue to outpace other retirement account types,” said Tara Fung, Chief Revenue Officer of Alto. “By linking Alto and Assure together, deal sponsors can raise more capital. Furthermore, we are helping increase access for individual investors to better participate in private markets by unlocking what is often their largest investment account—their retirement account.”
IRAs have become a powerful investment funding source for many reasons, including their significant tax benefits and opportunity for duration matching. Alto simplifies the process by allowing deal sponsors to accept IRA capital with just a few clicks through its 100% online experience. Additionally, Alto offers lower IRA fees for investors with transparent pricing and no commissions.
“At Assure, our goal is to enable organizers to do what they do best—find deals and build relationships. We do this by offering SPVs that simplify the deal process and fund administration, and in doing so, reduce costs to fund managers and founders,” said Jeremy Neilson, Co-founder and CEO of Assure. “This means that deals of all sizes are now feasible, including smaller deals that historically would not have been viable given SPV and fund administration setup costs. Providing this access is part of our mission, which is why we are excited to partner with Alto to unlock another investor funding source for organizers and increase investment access further.”
Alto gives individual investors the ability to access and execute investments in alternative assets, such as private companies - including private equity and VC funds - real estate, and marketplace loans, using their retirement savings. The firm’s cost-effective and hassle-free technology platform streamlines the process for companies, funds, borrowers, and investment platform partners to include IRA investors in their offerings. Alto’s current investment platform partners include: AngelList, Carofin, EquityZen, Forge Global, Groundfloor, MasterWorks, Republic, Silicon Prairie, and Wefunder. Launched in 2018, the Nashville-based firm provides investors with an opportunity to achieve true asset diversification in their portfolios while maintaining tax advantages in their retirement savings. For more information, please visit www.altoira.com or follow us on LinkedIn and Twitter.
Assure is the pioneering, industry-leading provider of comprehensive structuring and administrative services for the syndicate and venture investment community. The company offers professional, high-quality services and innovative software that streamlines setting up, closing and managing back-office fund administration for angel and private asset investing. Assure’s experience and volume significantly outpaces other fund administrators. The company’s approach, which allows clients to structure and close deals faster, cheaper and with more transparency, helped pave the way for the ascendance of the “super angels,” special purpose vehicles, micro VCs and syndicates. The company has worked with more than 1,400 clients, including AngelList, EquityZen, Forge, Tribeca Angels, LAUNCH and Bitwise, structuring and closing more than 7,000 deals with over $8 billion assets under administration. Assure offers a full suite of services, including special purpose vehicle administration, VC fund administration, fund accounting, fund taxes, Exempt Reporting Advisor (ERA) services, KYC/AML services, and 506(c) accreditation. For more information about Assure, please contact us.