Own what’s next—invest in private companies using retirement dollars
What if your retirement portfolio could do more than track the public markets? What if it could help shape the future? The next generation of innovative companies won’t all debut on Wall Street, and you shouldn’t have to wait for them to. With a self-directed IRA (SDIRA), you can use your retirement dollars to invest directly in private companies, diversify beyond public markets, and own a piece of what’s next. It’s a powerful way to take ownership of your financial future and invest on your terms.
Inside the SDIRA
So, what exactly is a SDIRA? Simply put, it’s a type of retirement account that expands your investment universe and opens the door to opportunities that traditional retirement accounts can’t offer. A SDIRA can give you greater control over your investment strategy by unlocking access to alternative asset classes, including private equity, real estate, precious metals and promissory notes. And beyond that added flexibility, it also provides the same potential tax benefits you’d expect from a standard IRA.
Why the private market matters
A profound shift is transforming the investment landscape, redefining where innovation happens and where opportunity is captured. Not long ago, trailblazing companies like Amazon went public early in their growth story — in Amazon’s case, just three years after founding, at a valuation of about $438 million.2 For those able to invest at the IPO or earlier, that investment translated into extraordinary potential for wealth creation as the company grew into a global giant worth more than $2 trillion today.3 Now, however, that growth trajectory often unfolds behind the scenes.
Many of today’s market leaders are staying private far longer, building much of their value creation and operational scale well before pursuing an initial public offering (IPO). Research from a recent Forge report highlights the magnitude of this shift: “Unicorns that went public between 2019 and 2025 showed a median annual appreciation of 65.7% between reaching a $1B valuation and IPO.”4 For investors, it’s important to understand the private market is no longer just a place where companies race toward an IPO, but rather a vital arena where private companies are already scaling, competing and winning at levels once found only in the public markets.
Under the radar: Finding opportunity off the beaten path
Within the private market, growth potential extends far beyond the headline-makers. Take aerospace, for example. Looking beyond fan favorite SpaceX, private pioneers like Blue Origin and Relativity Space continue to push the boundaries of space technology, each offering distinct investment characteristics for investors seeking broader, cross-sector exposure.
Furthermore, just as you might look beyond marquee names within a sector, you can also search further up or down the value chain to pinpoint other companies that make innovation possible. For instance, while many AI enthusiasts focus on high-profile leaders like OpenAI and Anthropic, equally vital are the private companies powering the broader AI ecosystem—chipmakers, cloud and data providers, energy and utility firms, and even real estate developers securing land for next-generation data centers. There are countless ways to capture opportunities not only in the spotlight, but also behind it.
Why use retirement dollars to invest in the private market
Of course, as with all investments, private investments involve trade-offs. They often carry higher risk and lower or no liquidity, meaning it can take time to convert holdings back into cash. But for longer-term investors, especially if you’re investing through a retirement account, that time horizon can work to your advantage.
By aligning the long-term, tax-advantaged nature of retirement investing with the extended growth cycles of private companies, you create a compelling combination. The compounding potential of long-term capital, paired with the potential tax benefits of investing through a retirement account, can help you keep more of what you earn while your investments grow. It’s a smart approach that can enhance your portfolio and open the door to new opportunities within the private market, all while complementing your traditional stock and bond positions for greater diversification.
How to own what’s next with Forge
If you're interested in investing in private companies shaping the future, SDIRAs unlock access to a world of opportunity. Whether you’re drawn to the innovators building tomorrow’s technology or the enablers powering those breakthroughs, SDIRAs offer a flexible, potentially tax-advantaged way to participate in growth and innovation on your terms.
At Forge Global, we’re committed to helping investors access the private market with confidence and clarity. Our platform has facilitated more than $16.2 billion in transaction volume, connecting individuals with some of the world’s most innovative private companies.5 Through Forge Trust —our custodial affiliate with over 40 years of experience serving SDIRA investors and $16.9 billion in assets under custody—you can open and manage your SDIRA seamlessly.6
Ready to get started? Open a self-directed IRA today or book a quick consultation with one of our SDIRA experts for 1:1 guidance and support.
FAQs about self-directed IRAs and private market investing
What is a self-directed IRA (SDIRA)?
A self-directed IRA (SDIRA) is a type of retirement account that lets individuals access an array of asset classes like traditional stocks and bonds, private equity, real estate, and private debt using pre- or post-tax income.
Can I use a self-directed IRA to invest in private companies?
Yes. If you’re an accredited investor, you can invest in private companies and other types of alternative assets using your retirement dollars through a SDIRA.
How does investing in private companies differ from traditional retirement investments?
In addition to the investor requirements mentioned above, investing in private companies differs from traditional assets like stocks, bonds, mutual funds or ETFs primarily in terms of liquidity and timing. Private company investments are typically less liquid and the initial investment takes longer to complete than a standard stock or bond purchase. There’s also no guarantee of an exit or the ability to sell shares on demand, which makes them better suited for investors with a long-term time horizon.
What are some of the risks of investing in pre-IPO companies?
Investing in pre-IPO or late-stage private companies can involve higher risk than traditional investments. Private shares are illiquid, meaning you may not be able to sell them quickly—or at all. There’s no guarantee a private company will go public or reach a liquidity event, and even successful IPOs can experience price volatility. In addition, private markets generally offer less price transparency and limited financial data, which can make due diligence more complex.
Are there tax implications or penalties for investing retirement funds in private companies?
Investments held in a self-directed IRA, including private company shares, follow the same IRS rules as traditional IRAs. As with any investment, you’ll want to avoid prohibited transactions and ensure compliance with contribution and withdrawal limits. It’s best to consult a financial advisor or tax professional before using retirement funds to invest in alternative assets.
How do I open a self-directed IRA with Forge Trust?
You can open a self-directed IRA with Forge Trust online. Investors can work with the team at Forge Trust to establish their account and fund it from existing retirement accounts or through new contributions.
