Why We're Here
The question comes up often. What are Opportunity Funds intended to accomplish? The video below posted in a Tweet from Senator Tim Scott, the author of the Opportunity Zones initiative, illustrates the impact of investment into marginalized communities. The video serves as an example of the power of Opportunity Funds to transform lives and create generational wealth. Go ahead, click on it. It'll make you feel good. Our goal is to reach this potential in the Carolinas.
Current Carolina Opportunity Fund Projects
ASSET CLASSES
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Multi-family
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Hospitality
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Student Housing
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Senior Housing
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Renewable Energy
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Bio Fuel
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Sustainable Farming
TARGET INVESTMENTS
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Urban locations in tertiary markets.
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Ground up development through joint ventures with local developers.
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Renovation of historic or existing assets.
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Low to moderate leverage.
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Long term, 10-year hold, with capital appreciation potential.
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Development of sustainable real assets.
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Seed or venture investment in QOZ Businesses
The Year Ahead for Carolina Opportunity Funds
In 2020, we are pleased to offer two new funds.
IMPACT Carolina Community is our second QOZ Business fund and our first focused on providing early stage financing to businesses that choose to locate within a Qualified Opportunity Zone. The fund's objectives are to provide financing to businesses seeking to provide jobs, services, and new industries to underserved markets that have historically lacked strong capital formation.
METRO Carolina focuses on developers that seek to build new or improve affordable housing for folks at a moderate to middle income range who are struggling with housing affordability and a jobs/housing mismatch. We are anticipating that in order to develop affordable multi-family housing, new innovations in construction, energy efficiency, and site usage will emerge. The need is obvious and we're excited about the possibilities for this sector.
Carolina Opportunity Funds are structured as 100% investor owned Class B Investments with a minimum investment of $250,000. In 2020, Fees and Promotes will be waived on additional investment dollars above $500,000. Targeted Cash Flow will distribute as follows:
First: 100% to Class B Members until Class B Members receive an 8% cumulative return on an annual non-compounded basis on their Capital Contribution not returned.
Second: To the Class B Members until the cumulative amount paid has reduced the amount of each Class B Member's Unreturned Capital Contribution to zero.
Third: Thereafter, 95% of the remaining available cash for distribution to Class B Members and 5% to the Class A Member (Carolina Opportunity Funds).
Should funds fail to realize a 10% IRR in any given year, Carolina Opportunity Funds will waive its annual fee of 185 basis points.