Highmore, a global alternative asset manager, has launched a real estate opportunity zone fund in the first quarter of 2019 with a targeted raise of $200 million.
Highmore’s opportunity zone fund, Highmore OZ Fund I LP, plans to invest in “gateway metropolitan statistical areas with strong growth prospects that will increase land values, real-estate demand and market liquidity,” the company said. The fund focuses on the institutional middle market and seeks diversity by property type, geography and operating partners.
The opportunity zone program, which was established under the Tax Cuts and Jobs Act of 2017, provides federal tax incentives for investments in low-income census tracts that have been designated as qualified opportunity zones.
The tax benefit is designed to drive economic development, community revitalization and job creation by encouraging long-term investments in economically distressed communities nationwide. There are currently 8,761 designated opportunity zones located throughout the U.S. and its five territories.
“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,” the company said in a statement. “Investors can also choose a single asset co-investment that has been diligenced and approved by Highmore.”
Headquartered in New York, with offices in London and Los Angeles, Highmore is a global alternative asset management firm that manages and advises $2 billion in assets on behalf of private and institutional clients. Highmore offers both liquid and illiquid alternative investments, including private credit, real estate, private equity, hedge funds, and liquid alternatives to cash management.