NES Financial has signed a contract to provide its fund administration suite for Gateway Opportunity Funds’ first fund, a St. Louis-based Qualified Opportunity Fund that is making its first investment in the shovel-ready Lighthouse Landing on the banks of the Mississippi River in St. Louis.
The tax incentives associated with the Opportunity Zones program were created to encourage long-term investment into targeted economically distressed areas across the country. Opportunity Fund investments offer investors temporary tax deferral, partial reduction of taxes on an investor’s realized capital gains and total elimination of taxes on all capital gains due to the appreciation of the OZ investment.
Gateway Opportunity Funds is now open and accepting investment.
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.
“If properly implemented, the Opportunity Zones legislation has the potential to be the most transformative economic impact program in U.S. history,” said Reid Thomas, executive vice president at NES Financial, in a statement. “Our purpose-built OZ solution was designed to help ensure that the program succeeds in doing the good it was intended to do. The rapid adoption of our solution in the market by clients like Gateway Opportunity Funds is a great sign of industry’s commitment to best practices.”
