Self-directed IRA platform Alto struck a partnership with Angel Capital Association (ACA), a professional association of angel investors, to help its clients access a greater range of alternative assets. ACA deploys more than $650 million in early-stage capital annually. The partnership will provide ACA’s members with increased access to early-stage investments while maximizing tax-advantaged strategies.
ACA's members will be able to use their tax-advantaged IRA accounts to allocate money to ACA’s vetted investment options, including high-growth start-ups and private companies. Alto will also bolster ACA’s education resources, including webinars and workshops. Alto's platform also allows financial advisors to invest on behalf of clients, and that will be the case ACA members that work with financial advisors.
Investment in alternatives continues to be a growing trend in the private wealth channel, with 91% of financial advisors planning to increase their allocations to the space within the next two years, according to a recent survey conducted by alternative investment platform CAIS and financial planning firm Mercer.
While investor accreditation and minimum investment requirements for ACA-vetted products on Alto’s platform will be determined by the issuing entity, according to Scott Harrigan, president of Alto and CEO of Alto Securities, the company’s registered broker/dealer affiliate, minimums for investments offered through Alto Marketplace typically range between $10,000 and $25,000.
“Partnering with Angel Capital Association aligns perfectly with our mission of enabling individuals to invest in private markets with their retirement assets,” Harrigan said in a statement. “Through this collaboration, ACA members will benefit from our intuitive platform, opening the door to private market investments that help diversify their retirement portfolios and align their investing with their values and interests.”
At the same time, ACA members will get guidance from Alto’s team of subject matter experts at both a live and a virtual event scheduled for this year.
According to a statement from Pat Gouhin, CEO of ACA, “Alto’s self-directed IRA platform introduces unparalleled investment flexibility, enabling our members to mitigate market risks and optimize tax strategies. With support from Alto’s investor relations and support teams, ACA members can craft personalized solutions to meet their unique needs.”
