Opportunity Zone Funds Raising Money Successfully
Opportunity Zone Funds that have successfully raised money in 2019 are Bridge Opportunity Zone Fund, Midas Opportunity Zone Fund, Community Capital Management National Opportunity Zones Fund, and Arctaris Opportunity Zone Fund.
BRIDGE OPPORTUNITY ZONE FUND
- With a fund-raising goal of $500 million, Bridge Investment Group became one of the few large firms to meet the target for its Opportunity Zone Fund.
- The company raised money from 500 investors. It is planning to invest in 12 real estate projects across eight cities in the US, including Queens in New York, Sacramento, Salt Lake City, California, and Nevada.
- Bridge Investment Group has assets worth $16 billion and 33,500 multi-family units and is seeking to launch another Opportunity Zone Fund in the second half of 2019, and a third fund in 2020.
MIDAS OPPORTUNITY ZONE FUND
- Midas Hospitality, a hotel development, management and investment firm, has raised $35 million for its Midas Opportunity Zone Fund.
- The fund was raised mainly from investors in the St. Louis area.
- Midas Hospitality is investing in the first hotel projects in the St. Louis' Cortex innovation district and Prospect Yards community.
- The general contractor for the two hotels which are currently under construction is MC Hotel Construction, Midas Hospitality's sister company. The hotels are projected to be completed in 2020.
- The 129-room Aloft hotel is located at Duncan Ave and the 152-room Element hotel is situated at Forest Park Ave. They are strategically sited to "target transient and extended stay customers" from tenants in the area which include Aon, Boeing, Microsoft, and Square.
- Other notable organizations that are located nearby are Barnes-Jewish Medical Center, Saint Louis University, SSM Health, and Washington University St. Louis.
COMMUNITY CAPITAL MANAGEMENT NATIONAL OPPORTUNITY ZONES FUND
- Community Capital Management (CCM), an impact investing manager based in Fort Lauderdale, raised a $7 million guarantee commitment from Kresge Foundation for its Community Capital Management National Opportunity Zones Fund.
- CCM currently has 18 impact themes. They raised money to provide equity investments for projects that support them.
- The fund seeks to attract $300 million in investments to build a diverse investment portfolio in Qualified Opportunity Zone businesses.
ARCTARIS OPPORTUNITY ZONE FUND
- Arctaris Impact, a Boston-based manager of four impact funds which focuses on businesses in low-income communities, has raised $15 million in guarantee commitments from Kresge Foundation for its Arctaris Opportunity Zone Fund.
- The fund will provide "growth equity investments in small- to medium-sized" businesses in several sectors including manufacturing, renewable energy, telecom, and real estate.
- Arctaris plans to leverage Kresge investment to attract funding for its $500 million principal-protected Opportunity Zone Fund from U.S. commercial banks, institutional investors, and family offices.
COMMON STRATEGIES OF OPPORTUNITY ZONE FUNDS
- One key common strategy of Opportunity Zone Funds is to attract investors who are seeking impact and profit by showing that their funds will improve lives of people living in low-income communities.
- Opportunity Zone Fund managers are aligning their investment strategies with community goals. They coordinate with community stakeholders, establish social and environmental goals and fund local businesses which will create good jobs, increase wages and create wealth for local communities and investors.
- In order to attract the Kresge Foundation funding, Arctaris and CCM agreed to operate with a degree of transparency, accountability, and disclosure which is unprecedented in the Opportunity Zones space. This move is expected to "set the standard for what investors should ask for before committing dollars to Opportunity Zone Funds".