The Tax Cuts and Jobs Act of 2017 (P.L. 115-97) established the Opportunity Zone Program, which provides powerful incentives for investors to reinvest capital gains into opportunity zones — targeted economically distressed areas across the U.S. Investors must invest through qualified Opportunity Zone Funds, which opens up enormous potential for those looking to raise and deploy capital at attractive rates to acquire or improve business properties within the qualified zones. However, since this alternative asset class is new, and regulatory guidance is still a work in progress, Opportunity Zone Funds demand rigorous oversight from specialized third-party administration – as part of industry best practices. This is exactly what our Opportunity Zone Fund Administration Solution provided by FES services delivers.
Opportunity Zone Funds hold tremendous potential for fund managers, investors and economically distressed communities. But they demand careful administration and rigorous oversight — the more so since this asset class is brand new, and regulatory guidance is still a work in progress.