Private Equity Best Practices: Opportunity Zones: A Path to Economic Revitalization – Part 3
Opportunity Zones: A Path to Economic Revitalization – Part 3
The Role of Private Equity and Venture Capital in Opportunity Zones
Private equity firms and venture capital investors have a significant role to play in the success of Opportunity Zones. Their expertise, financial resources, and commitment to long-term growth make them ideal partners for investing in these designated areas. By leveraging their networks and industry knowledge, private equity and venture capital firms can identify high-potential investment opportunities that align with their investment strategies.
At Benevolent Capital Partners and Fortuitous Partners, we have been at the forefront of driving private equity and venture capital investments in Opportunity Zones. As a result we have developed extensive experience and a deep understanding of any programs relating to opportunity zones which has positioned us as a leader in this space. Through strategic partnerships and innovative investment models, we have demonstrated the transformative potential of private sector investments in revitalizing distressed communities.
Sports Industry Opportunity Fund Highlight: Fortuitous Partners Opportunity Fund
Our Fund’s purpose is to invest in “professional sports-anchored multi-asset developments in Opportunity Zones throughout the United States.” The Fund’s size is $500 million and is open for investment.
The Fortuitous Partners Opportunity Fund provides an avenue of funding for sports facilities and sports.com projects within Opportunity Zones.
Conclusion: Unlocking the Potential of Opportunity Zones
Opportunity Zones have the potential to transform economically distressed communities through strategic investments. By leveraging the tax benefits provided by the program, investors can make a positive impact while potentially realizing significant financial returns. Private equity and venture capital firms, such as Benevolent Capital and Fortuitous Partners are playing a vital role in driving these investments and accelerating the revitalization of Opportunity Zones.
As the Opportunity Zone program continues to evolve and mature, it is important for investors to stay informed and adapt their strategies accordingly. By carefully evaluating investment opportunities, collaborating with experienced professionals, and aligning social impact goals, investors can contribute to the long-term success of Opportunity Zones and create sustainable change in undercapitalized communities.
At Benevolent Capital we have set a great example by embracing the opportunities within Opportunity Zones, this has allowed our investors to not only achieve financial success but also play a vital role in creating positive social change.
Benevolent Capital
At Benevolent Capital we have carved a niche for our investors by seamlessly blending traditional family values with cutting-edge investment strategies. Our approach is characterized by a thoughtful fusion of innovation and prudence, ensuring that every investment aligns with the long-term vision and legacy goals of our clients.
As principals we co-invest our own money in every deal we participate in, we do not charge our investors management fees, investors receive a 100% preferred gross return on their investment. After the 100% return (a 2X) the investor will receive a 70% net return with a 30% promote to the GP. This arrangement makes Benevolent Capital a trusted partner in safeguarding and growing wealth for our investors.
Benevolent Capital includes a world-class group of partners, associates and investors, and our portfolio now spans catalytic investments in venture capital, private equity, real estate development and a diverse collection of global professional soccer franchises. Our wide range of experience from managing successful companies, to completing management buyouts, acquisitions, and a wide variety of debt and equity investments totaling over $4 billion enables us to truly partner with the entrepreneurs and management teams of our portfolio companies and provide hands-on support and guidance towards realizing their full potential. Benevolent Capital has a proven track record of successful investments. Notably, our $200k investment in seed capital for Enzymatics, a biotech firm later ultimately acquired by Invitae (NASDAQ: NVTA), has yielded over $30MM in total returns for Benevolent Capital’s investors.
What sets us apart is not just our financial acumen but also our dedication to fostering meaningful relationships. Going beyond conventional investment practices, we prioritize open communication and transparency that allows us to build trust with our stakeholders, as principals we co-invest our own money in every deal we participate in making Benevolent Capital a trusted partner in safeguarding and growing wealth for our investors.
In an ever-evolving financial landscape, our expertise, coupled with Benevolent Capital’s commitment to hybrid family office investments, paints a picture of success, where financial prosperity meets enduring values.
About the Author
Brett M. Johnson, founder and CEO of Benevolent Capital, founder and partner of Fortuitous Partners, and co-founder and chairman of Rhode Island FC. He has a bachelor’s degree from Brown University and a Masters of Business Administration from the Presidential/Key Executive program at Pepperdine University. Brett is also a graduate from the Harvard Business School’s President’s Leadership Program in 2014. An active member of the Young Presidents Organization.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Always consult with a qualified financial advisor or wealth manager before making any investment decisions.
