SkyBridge Capital, an alternative investment firm co-founded by Anthony Scaramucci, has reportedly split with EJF Capital, the subadvisor to its $3 billion opportunity zone fund, just weeks after its initial launch, according to a recent report by The Real Deal. The company said that it hopes to announce EJF’s replacement “in the coming days.”
Skybridge and EJF Capital, a hedge fund and private equity fund manager, launched SkyBridge-EJF Opportunity Zone REIT, a private, non-traded REIT with a minimum investment of $100,000. The REIT has a mandate to invest in designated opportunity zones, which are low-income communities where recycled capital gains can receive favorable tax treatment.
In an interview with SkyBridge president Brett Messing, the publication claims that “concerns from distribution partners about EJF’s lack of experience managing real estate funds” was the reason for the split.
“This endeavor was going to be their first dedicated real estate fund,” Messing told TRD, noting that their distribution partners wanted “to see a track record or a return stream from a fund that was a dedicated real estate fund.”
In September 2018, EJF registered EJF OpZone Fund I L.P, an $500 million opportunity zone fund, that at the time had raised nearly $10.4 million from 16 investors.
Opportunity Zones were passed into law with bipartisan support as part of the Tax Cuts and Jobs Act of 2017. The program was established to stimulate economic development in distressed communities across the country by offering potentially significant tax benefits to investors that make long-term investments in qualified opportunity zones.
SkyBridge Capital is a global alternative investment firm with $9.6 billion in assets under management or advisement. The firm manages multi-strategy funds of hedge funds and customized separate account portfolios, and provides hedge fund advisory services.