NES Financial Signs 20th Opportunity Zone Fund to Groundbreaking Administration Platform

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Innovative specialty financial administrator builds momentum, market leadership in new space.

NES Financial
...embracing third-party oversight by trusted leaders such as NES Financial will be key to ensuring the Opportunity Zones incentive stimulates responsible development and serves the needs of communities.

NES Financial announced today that it has recently contracted to provide its 20th Opportunity Zone Fund client with its purpose-built Opportunity Zone Fund Administration Suite, which is designed to provide the utmost in security, transparency and compliance to fund managers and investors alike. NES Financial’s innovative, technology-enabled administration expertise, which has already revolutionized best practices in industries as diverse as private equity, EB-5 investor visas and tax-deferred 1031 property exchanges, is now poised to do the same for Opportunity Zone Funds, as its solutions are adopted by an ever-growing share of the new industry.

Opportunity Zone Funds are qualified private-sector investment vehicles that invest at least 90 percent of their capital into Opportunity Zones (OZs) — targeted economically distressed areas across the U.S. The tax incentives associated with the OZ program were created to encourage long-term investment into these areas, with benefits accruing to investors at 5-, 7- and 10-year milestones.

However, funds must be careful to meet the program requirements and to generate accurate and timely reporting; otherwise, the tax benefits can easily be lost. Furthermore, the novelty of the program and still-evolving regulations surrounding Opportunity Zone Funds have left many prospective investors with unease about the security of their investments — a concern that NES Financial’s solutions address head-on.

“Pending further regulations, the OZ program is currently operating with a minimum in initial oversight,” said Reid Thomas, Executive Vice President at NES Financial. “On the one hand, this is a good thing — there’s very little red tape to deter fund formation and investment. However, this same flexibility also leaves the industry vulnerable to impropriety, intentional or otherwise. Our OZ Fund Administration Suite brings established best practices from other, more mature financial industries into the Opportunity Zone space, maximizing fund security, transparency and compliance and providing peace of mind to investors.”

The purpose of the NES Financial Opportunity Zone Fund Administration Suite is to efficiently and securely handle administration of growing funds, at scale, so that Opportunity Zone Fund managers can focus on raising capital and deploying it to underserved communities across the country. The roster of OZ Funds that have already contracted with NES Financial is diverse, ranging from nonprofit community organizations to large-scale greenfield real estate development firms.

“The Opportunity Zones incentive has the potential to be one of the most impactful economic development tools in the country,” said Steven Polivy, chair of Akerman’s Economic Development and Incentives practice. “As community development professionals move into this new space, embracing third-party oversight by trusted leaders such as NES Financial will be key to ensuring the Opportunity Zones incentive stimulates responsible development and serves the needs of communities.”

For additional information about the Opportunity Zone Fund Administration Suite, please visit NES Financial's online OZ resource center.

About NES Financial
NES Financial is a Silicon Valley financial technology (FinTech) company providing technology-enabled solutions and services for the efficient back- and middle-office administration of complex financial transactions. Serving private equity, commercial real estate, and Fortune 1000 clientele, NES Financial offers industry-leading private equity fund administration, loan servicing, specialized EB-5 and Opportunity Zone Fund Administration, and 1031 tax-deferred exchange services. Their unwavering commitment to data security, operational redundancy, and compliance reporting is evidenced by 12 consecutive years of successful independent audits of their technology, processes, and financial controls. Today, NES Financial services over 190 funds, administers over $20B annually, and has worked with more than 700 EB-5 projects. For more information, visit nesfinancial.com.

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