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 AltsWire 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.

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