Grey Holdings Group Launches Defense Technology Opportunity Zone Fund
Grey Holdings Group, the holding management company for Grey Ops LLC, has launched an opportunity zone fund focused primarily on defense technology, which the company says is the first of its kind.
Grey Holdings Group, the holding management company for Grey Ops LLC, has launched an opportunity zone fund focused primarily on defense technology, which the company says is the first of its kind.
Opportunity zones, born out of the 2017 Tax Reform Act, are designed to spur economic development and job creation in distressed communities by providing tax benefits to investors.
Under the 2017 Tax Reform Act, investors can defer and reduce capital-gains taxes when they reinvest profits into an opportunity zone fund, as long as the reinvestment comes within 180 days following the sale of a prior investment. The tax rules surrounding the program are expected this month. There are currently 8,767 designated opportunity zones located throughout the U.S.
“Most qualified opportunity zone funds are focused on real estate, which is pretty straightforward,” noted Brian Gamble, director of finance for Grey Holdings Group. “However, the greatest tax benefit of this program is the 10 years tax-free gain. Investments in qualified opportunity zone businesses will be the biggest beneficiaries because investors get the appreciation of the real estate and the business.”
Grey Holdings Group selected Grey Ops, an opportunity zone business, as its first defense technology transfer investment. The company noted that some examples of technology transfer projects from the Department of Defense include the commercialization of the internet, iPhone, GPS, and duct tape.
Gamble said that Grey Ops was selected due to their experience in licensing defense technologies. The company currently owns the licensing rights to a product called “Silent Spring,” which neutralizes improvised explosive devices (IEDs) when poured onto the explosives.
Grey Holdings Group is responsible for the administration and compliance of the opportunity zone fund.
