Monarch Private Capital Launches Three Opportunity Funds to Boost Investments in Opportunity Zones
ATLANTA – (COMMERCIAL THREAD) – Monarch Private Capital (MPC), a nationally recognized tax investment firm that develops, finances and manages a diverse portfolio of projects generating federal and state tax credits, is pleased to announce the launch three opportunity funds (O-Funds) targeting market rate investments in qualified opportunity areas (O-Zones).
An O-Fund is a new investment vehicle created as a result of the Tax Cuts and Jobs Act of 2017 to encourage long-term investments in underserved communities that need developments to revive their economies. MPC has created, operated and successfully managed numerous tax credit funds over the past 13 years which have included investments in recently designated O-Zones, and therefore are naturally positioned to offer O-Funds.
âThe launch of these O-Funds responds to the demand we have seen for quality investments from developers who have already had success in economically challenging environments,â said Alice Nolen, Director of Sales and Projects specials for Monarch Private Capital. âWe are excited to offer what we believe are exciting opportunities with experienced developers in underserved communities where we can all make a positive impact. ”
O-Funds allow investors to defer tax on recent capital gains and, if the conditions are met, they can reduce their tax payment by up to 15%. In order to maximize the tax reduction, the current program requires that the majority of investments be made by December 31, 2019 and held for at least seven years to meet the program end date of 2026. Investors can also benefit abolition of taxes on the capital gain on their investments in zone O, subject to a 10-year holding period.
âNow that the Treasury has given us adequate guidance on the tax code, it is time to take advantage of this opportunity before the seven-year tax benefit expires,â said Billy Huger, Managing Director of Monarch Private Capital Advisors. âWhile the benefits of this program are an incredible incentive for investors to allocate capital to underserved communities, they can also have a significant impact in increasing the after-tax return on investments. ”
As with any new investment program, investors are cautious as they become familiar with the opportunity and the market. “While many are rightly hesitant to engage in O-Zone projects with core market commercial developers, they must realize that there are developers who have been successful in working in some of these areas. economically disadvantaged throughout various market cycles, âsaid Huge Plus.
For more information about these funds or other MPC programs and services, please contact Alice Nolen at [email protected] or Billy Huger at [email protected] Additional information is also available by visiting www.monarchprivate.com.
About Monarch Private Capital
Monarch Private Capital has a positive impact on communities by investing in industries benefiting from tax credits. The company is a nationally recognized tax capital investor providing innovative capital solutions for affordable housing, historic rehabilitations, renewable energy, cinema and other qualified projects. Monarch maintains long-term relationships with institutional and individual investors, developers, and lenders who participate in these types of federal and state programs. Based in Atlanta, Monarch has tax credit offices and professionals located across the United States.