Highmore Launches $200 Million Real Estate Opportunity Zone Fund

Highmore, a leading global alternative asset manager, launched a real estate Opportunity Zone Fund in the first quarter of 2019 with a targeted capacity of $200 million.

Highmore, a leading global alternative asset manager, launched a real estate Opportunity Zone Fund in the first quarter of 2019 with a targeted capacity of $200 million.

Portfolios sitting on U.S. capital gains from the liquidation of virtually any asset may newly defer and, if held for the full fund term, largely eliminate capital gains taxes by transferring those gains into qualified Opportunity Zone Funds. Established under the Tax Cuts and Jobs Act of 2017, Opportunity Zones encourage investments in economically distressed communities throughout the U.S. And only capital gains, whether in part or whole, need be reinvested.

The Opportunity Zone program provides incentives to focus on community revitalization over the long-term while providing downside protection and low correlation to cycles:

· Deferment of unrealized capital gains, and the ability to significantly reduce capital gains tax liabilities with a step-up in basis of as much as 15%;

· Exclusion of new capital gains tax on fund investments;

· Further tax benefits include increased expensing and depreciation; and

· A genuine sustainable impact, making long-term investments in economically distressed communities.

2018 capital gains may be invested in the Fund through the end of June 2019; 2019 and forward, capital gains may be invested on a rolling basis.

Highmore brings an unparalleled combination of longstanding, local boots-on-the-ground real estate and sustainable investment experience in Opportunity Zones. The team is executing on an opportunistic $1+ billion shovel-ready development pipeline with transactions that have a very low basis and whose return profiles afford substantial cushion against future economic turbulence, all while putting investors in a position to benefit from strong growth in the market.

Highmore's Opportunity Zone Fund makes qualifying real estate investments within Opportunity Zones, focusing on gateway metropolitan statistical areas with strong growth prospects that will increase land values, real-estate demand and market liquidity. Highmore's Opportunity Zone Fund focuses on the institutional middle market and seeks diversity by property type, geography and operating partners.

Highmore's real-estate operating partners have a long history and deep domain expertise across industrial, multi-family and office sectors working in their respective markets, which happen to be within Opportunity Zones. Investors can also choose a single asset co-investment that has been diligenced and approved by Highmore. Highmore provides full transparency, a no-conflict model and alignment of interest with investors.


Headquartered in New York, with offices in London and Los Angeles, Highmore (www.highmore.com) is a global alternative asset management firm. Highmore was founded by a team with a long-shared history at firms such as Man Group, FrontPoint Partners, Bank of America Merrill Lynch, Citigroup, and Oppenheimer & Co., where the team built investment businesses, developed differentiated alternative investment strategies, managed funds and oversaw assets in excess of USD $25 billion.

Acting as both principal investors and allocators, Highmore manages and advises assets in excess of USD $2 billion on behalf of sophisticated private and institutional clients. Highmore offers a unique breadth and depth of expertise across the whole of the alternative investment universe in both liquid and illiquid investments: from private credit to real estate, private equity to hedge funds, and liquid alternatives to cash management. We work with clients either tactically, providing access to and support for specific investment opportunities, or holistically, managing clients' complete investment portfolios through a proprietary risk mitigation framework.

CONTACT: Jon David Willingham, Partner


Source: Highmore


Categories: Asset Management, Investments, Real Estate Investments

Tags: Alternative Investments, Asset Management, Investment Management, Investments, Opportunity Zone, Opportunity Zone Fund, Property Investments, Real Estate Investments, Tax Optimized Investments