Opportunity Zone Fund Raising Improves Quarter-Over-Quarter, But Still Sluggish

Novogradac announced that qualified opportunity funds tracked by the consulting firm reported raising $2.01 billion in equity over the first six months of 2023, including $1.33 billion during the second quarter of the year, the lowest half-year total for any period since Novogradac began tracking qualified opportunity fund equity data.

Equity reported by qualified opportunity zones tracked by Novogradac reached a cumulative $36.10 billion as of June 30, 2023.

Currently, Novogradac is tracking 1,731 qualified opportunity zones, of which 1,330 report a specific amount raised.

As The DI Wire previously reported in April 2023, Novogradac announced that qualified opportunity funds raised the lowest total since Novogradac began releasing quarterly updates for investment in 2021, $700 million in new equity.

The median amount of equity raised by those qualified opportunity funds reporting an equity amount as of June 30 was $4.6 million, the same as Dec. 31, 2022. Since the end of 2022, that amount has been $4.6 million or $4.7 million for every reporting period.

According to Novogradac, residential and commercial development continue to be the primary areas of focus for qualified opportunity funds, receiving $29.51 billion and $24.14 billion in investment respectively.

Qualified opportunity funds with a minor focus on hospitality have raised $4.05 billion, while those with at least some focus on renewable energy have raised $1.99 billion and those with at least some focus on operating businesses have raised $1.06 billion.

Click here to visit The DI Wire directory page.