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CAPITAL RAISING DEVELOPMENTS FOR QUALIFIED OPPORTUNITY
FUNDS
By Christopher J . Rogers and Brett D . Siglin
How SEC ’ s new rules for common securities offering exemptions can impact the OZ industry .
Capital raising for any kind of venture , but especially
niche initiatives like qualified opportunity funds
( QOF ), is challenging enough and even more so when navigating the federal securities laws . However , recent regulatory developments and the burgeoning offering mechanisms have the potential to significantly expand the pool of potential investors and reduce a fund sponsor ’ s burden . Fund sponsors should pay careful attention to the possibilities arising from changes to the traditional private placement exemptions and to general solicitation market leaders when structuring their offerings – whether for real estate or operating companies .
SEC ADOPTS NEW RULES IMPACTING THE OZ MARKET
In the late fall of 2020 , the Securities and Exchange Commission ( SEC ) adopted final rules to implement significant changes to the common securities offering exemptions under “ Regulation D ,” including SEC Rule 506 . This rule permits a company , or issuer , to raise an unlimited
OPPORTUNITYZONE . COM