February 5, 2021
Equity increased by qualified chance funds (QOFs) that are tracked by national accounting as well as consulting firm Novogradac surpassed $15 billion at the end of 2020. The firm’s Novogradac Chance Areas Financial Investment Record: Information Through Dec. 31, 2020 records $15.16 billion in equity increased by QOFs for which Novogradac knows.
Novogradac is tracking 969 QOFs, of which 659 have actually reported the dollar quantity of equity raised by the end of in 2014. Novogradac started tracking chance areas (OZ) financial investment in Might 2019 and also the variety of QOFs tracked as well as reported equity raised has actually raised progressively.
“The continuing growth of investment in 2020 in possibility funds among the COVID-19 pandemic is particularly excellent information as organizations and also residents in chance areas battle to recover from the pandemic induced economic recession,” stated Michael J. Novogradac, Certified Public Accountant and managing companion of Novogradac. “The OZ incentive is proving to be an effective device in driving funding to distressed locations.”
Novogradac’s record reveals approximately $23 million increased by QOFs that have reported the buck amount of equity raised. Funds with at least a partial focus on domestic investment have increased $11.91 billion and also those with at the very least a partial emphasis on industrial investment have actually raised $9.37 billion (due to the variety of QOFs with several locations of emphasis, the amount of all locations of emphasis goes beyond $15.16 billion).
In an article coming with the launch of the report, Michael Novogradac says the complete financial investment in QOFs is “most certainly more than $15.16 billion, because of the reality that the rolling collection of details originates from QOFs voluntarily offering information to Novogradac or from other public resources such as Stocks and Exchange Payment filings and also news release.
“While the Novogradac checklist consists of single- and also multi-asset funds, it does not include proprietary or private funds that are owned and also managed by their major investors,” he adds.
“In spite of unprecedented economic difficulties, individuals remain to spend in chance areas,” claimed John Sciarretti, Certified Public Accountant, Novogradac companion as well as head of the Opportunity Zones Working Team. “As time passes and financiers come to be much more comfortable and also aware of investing in possibility funds, we anticipate the quantity of financial investment to remain to expand.”
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