We Help Investors and Fund Managers Turn Unrealized Gains into Opportunity
The Qualified Opportunity Zone (QOZ) Program is a permanent program that incentivizes long-term investment in low-income and economically distressed communities — offering taxpayers the ability to defer capital gains tax by investing in Qualified Opportunity Funds (QOFs). Our dedicated QOZ team has focused on this program since its inception, working with some of the first investors and QOF managers in the nation. We also collaborate with our firm’s national real estate, investment company industry, and tax credits and incentives groups to help our clients maximize their opportunities.
To view an interactive map of QO Zone tracts, visit CDFI's website.
Our Qualified Opportunity Zone Services
We provide a variety of compliance and consulting services, including:
Qualified Opportunity Funds (QOFs)
- Fund structuring (single-asset QOF, multi-asset QOF or series LLCs)
- Preparation or review of financial modeling and projections, including multiple of invested capital, cash on cash return and IRR with/without QOZ benefits
- Integration of tax credits and other incentives
- Transaction document review, including private placement memorandum and QOF organizational documents
- Management of regulatory deadlines including:
- 180-day investment timeline
- 12-month QOF reinvestment period
- QOF penalty testing
- Review and planning around fund issues including:
- Analysis of related party issues
- Circular cash flow issues
- Distribution planning including operating distributions and debt financed distributions
- Carried interest planning
- Exit strategies
- Qualified Opportunity Zone Business (QOZB) due diligence
- Review term sheets and financial projections
- 70% QOZB property measurement
- 50% gross income requirement/alternative safe harbors
- Nonqualified financial property testing
- Working capital safe harbor review
- Written plan implementation and review
Compliance and Consulting
- Assistance in design and implementation of fund management policies and procedures
- Perform semi-annual agreed-upon procedures for QOF and QOZB
- Perform annual audits, reviews and compilations of QOF and QOZ
- Examine financial accounting control systems
- Federal, state and local tax preparation
- Fund accounting services and investment reporting
- Valuation and appraisals