NES Financial has added a new, purpose-built fund administration suite to its current lineup of EB-5, 1031 exchange, and private equity solutions. The Opportunity Zone Fund Administration Suite leverages NES Financial’s award-winning eSTAC® administration technology to provide maximum security, transparency and compliance to the burgeoning Opportunity Zone Fund industry.
Opportunity Zone Funds (OZFs) are qualified private-sector investment vehicles that invest at least 90 percent of their capital into Opportunity Zones — targeted economically distressed areas across the U.S. Under rules outlined in 2017’s Tax Cuts and Jobs act, Opportunity Zone Funds offer investors lucrative tax breaks, including temporary tax deferral and partial elimination of taxes on an investor’s realized capital gains, and total elimination of taxes on all capital gains due to the appreciation of the OZF investment.
“The Opportunity Zone Fund industry is in its infancy, and its potential as both an asset class and a broad economic driver is enormous,” said Michael Halloran, NES Financial Chairman and CEO. “However, as a new and rapidly evolving market, it is also vulnerable to impropriety — intentional or otherwise. Given the levels of complexity and compliance reporting involved, we expect third-party oversight to quickly become a recognized best practice for Opportunity Zone Funds.”
The purpose of the NES Financial Opportunity Zone Fund Administration Suite is to efficiently and securely handle the middle- and back-office administration for growing funds, at scale, so that Opportunity Zone Fund managers can focus on raising capital and deploying it to underserved communities across the country. This includes handling the specialized tracking and reporting requirements of the OZ program with the highest possible degrees of fund security, investor transparency, and regulatory compliance.
Read the full press release by clicking here.
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