Qualified Opportunity Fund Formation & Management
Expert guidance for QOF formation, compliance, and ongoing administration
What is a Qualified Opportunity Fund?
A Qualified Opportunity Fund (QOF) is an investment vehicle organized as a corporation or partnership for the purpose of investing in Opportunity Zone property. QOFs provide investors with a way to pool capital and access professional management while maintaining OZ tax benefits.
QOF Formation
Complete setup and structuring of your Qualified Opportunity Fund from initial formation through IRS certification.
- Entity formation and structuring
- Operating agreement development
- IRS certification application
- Regulatory compliance setup
Compliance Management
Ongoing compliance monitoring to ensure your QOF meets all IRS requirements and maintains tax benefits.
- 90% asset test compliance
- Substantial improvement requirements
- Annual reporting and documentation
- IRS audit support
Fund Administration
Comprehensive fund administration services including investor relations, reporting, and operational support.
- Investor onboarding and KYC
- Capital call management
- Distribution processing
- Financial reporting
Performance Monitoring
Regular monitoring and reporting on fund performance, compliance status, and investment opportunities.
- Performance tracking and reporting
- Compliance monitoring
- Risk assessment and management
- Investor communication
QOF vs. Direct Investment Comparison
🏛️ Qualified Opportunity Fund
Advantages:
- Professional management and expertise
- Diversification across multiple properties
- Lower minimum investment requirements
- Reduced operational responsibilities
- Access to institutional-quality deals
- Built-in compliance monitoring
Considerations:
- Management fees (typically 1-2%)
- Carried interest (typically 15-20%)
- Less control over investment decisions
- Limited liquidity options
🏢 Direct Investment
Advantages:
- Full control over investment decisions
- No management fees or carried interest
- Direct ownership of property
- Potential for higher returns
- Flexibility in operations
- Direct tax benefits
Considerations:
- Requires significant expertise and time
- Higher minimum investment requirements
- Single property risk
- Compliance responsibility
- Operational management required
QOF Formation Success Story
Multi-Family Development QOF
Challenge: Real estate developer wanted to raise $25M for multi-family development projects across three Opportunity Zones.
Solution: We formed a Qualified Opportunity Fund with the following structure:
- Delaware LLC structure for tax efficiency
- Professional management team with 15+ years experience
- Diversified portfolio across Austin, Denver, and Miami
- 2% management fee, 15% carried interest
- Minimum investment: $250K
Results:
- Successfully raised $25M from 45 accredited investors
- Acquired 3 development sites within 6 months
- Projected 15% IRR over 7-year hold period
- Full compliance with all QOF requirements
- Investors benefit from professional management and diversification
Ready to Form Your QOF?
Get expert guidance on Qualified Opportunity Fund formation, compliance, and management to maximize your investment potential.