Self-Directed 401K as a Funding Source from Friends & Family

by a searcher from University of Pennsylvania - The Wharton School

6 years ago

All-
 
Any self-funded searchers raise equity capital from
individuals (friends and family) through a self-directed 401k platform like Directed Equity (link below)?
 
http://directedequity.com

My understanding is it allows you to lever up tax-deferred retirement assets as
a equity funding source towards a business acquisition.  I’m a fan of this concept and curious if anyone has any
experience with this medium to pool equity capital. 
 Any insights are appreciated!
 Abdulla Mirpur

13 likes
331 views
12 comments

lender from University of Missouri - Columbia

Hi Christina, honest answer is that I have no clue. My ROBS knowledge is specific to SBA acquisition where the equity is coming from the ROBS program and that is where there is some current confusion. As far as using the ROBS program for an acquisition outside of the US, that would be more of an accounting and/or legal question.

4 years ago | like reply | 1 like

searcher from Massachusetts Institute of Technology - MIT Sloan School of Management

Great story! Thanks also for sharing with such level of detail.

4 years ago | like reply | 0 likes

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