Key Takeaways
- • DelCam is launching Opportunity Zone Fund I with a $10 million target raise from investors, positioning the firm to enter the manufacturing sector through the federal Opportunity Zones program.
- • The fund is scheduled to launch in late 2019, with acquisition activity expected to commence in January 2020.
- • The initiative targets the manufacturing sector specifically, a focus that distinguishes this opportunity zone deployment from broader real estate strategies typical in the OZ space.
Summary
DelCam, a management company, is establishing its inaugural Opportunity Zone fund as part of a strategic push into manufacturing sector investments. Opportunity Zone Fund I targets a $10 million capital raise and is slated for launch in late 2019, according to the announcement dated July 23, 2019.
The fund represents DelCam's entry into the Opportunity Zones investment landscape, a program created under the Tax Cuts and Jobs Act of 2017 that provides capital gains tax incentives for investments made in economically distressed communities designated by the U.S. Treasury. By concentrating specifically on manufacturing, DelCam is positioning the fund to capitalize on operational and industrial asset opportunities rather than the traditional real estate development focus that has dominated many OZ vehicles.
The fund's timeline indicates management expects to complete its initial capital raise and organizational setup by late 2019, with the first portfolio acquisition targeted for January 2020. This structured approach suggests DelCam has identified specific manufacturing sector opportunities and intends to move swiftly once the fund is operationalized.
The fund represents DelCam's entry into the Opportunity Zones investment landscape, a program created under the Tax Cuts and Jobs Act of 2017 that provides capital gains tax incentives for investments made in economically distressed communities designated by the U.S. Treasury. By concentrating specifically on manufacturing, DelCam is positioning the fund to capitalize on operational and industrial asset opportunities rather than the traditional real estate development focus that has dominated many OZ vehicles.
The fund's timeline indicates management expects to complete its initial capital raise and organizational setup by late 2019, with the first portfolio acquisition targeted for January 2020. This structured approach suggests DelCam has identified specific manufacturing sector opportunities and intends to move swiftly once the fund is operationalized.
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