Hall Venture Partners: Second Round of Proposed Opportunity Zones Guidance Provides Clarity on Operational Businesses
May 13, 2019
-On the heels of the second set of proposed Opportunity Zone
regulations, Hall Venture Partners announces the first close, a $10M
Investment in Hall Opportunity Fund 1, and is leveraging the Hall Labs
innovation campus to target best growth companies for fund consideration-
PROVO, Utah–(BUSINESS WIRE)–lt;a href="https://twitter.com/hashtag/HallVenturePartners?src=hash" target="_blank"gt;#HallVenturePartnerslt;/agt;–On April 23, 2019, the U.S. Department of the Treasury published the
second round of proposed Opportunity Zone regulations. The second round
of proposed guidance addressed many outstanding questions related to
investments in new and expanding operating businesses. As a result of
the clarity provided, Hall Venture Partners (HVP) announced today that
managing partners David Hall, Derek Weber, Matt Van Dyke and David Kunz
have closed the first investment of $10M into its tax-advantaged venture
fund, Hall Opportunity Fund 1.
Hall Opportunity Fund 1 is a $100M fund focused on venture growth
businesses within the state of Utah. The fund is uniquely positioned to
take immediate advantage of the opportunity zone regulations with a
myriad of pre-vetted target opportunity zone businesses that have gone
through a systematic process of incubation. The initial targets leverage
the infrastructure, experience and execution of the Hall Family and the
Hall Labs Innovation Campus, which has demonstrated a long history of
successful technology inventions and company exits dating back to the
1950s. Today, there are more than 25 companies active in multiple
sectors spanning seed stage to growth stage on the Provo, Utah
technology campus.
“As other funds have been scrambling to figure out how to navigate the
regulations, raise capital and source narrow-scoped investment
opportunities, we are incredibly fortunate to be already working with a
portfolio of 20-plus companies in one of the country’s top 3 Opportunity
Zones,” said Van Dyke. “Hall Labs is providing the fund a systematic
process to incubate and grow innovative technology and ESG companies for
fund consideration. Each company must meet specific investment criteria
including a strong return profile in addition to meeting OZ compliance.
The ability for these companies to receive investment and grow within
the designated zone makes the opportunity very compelling.”
Having a proven process, the right location, purpose-built
opportunities, and a strong bench of partners, the HVP team is in a
position to exceed the intent of the program while delivering strong
returns for investors.
If applied properly, the opportunity zone legislation brings
large benefits to investors, Van Dyke noted, by allowing deferral of
capital gains, potential original gain
reductions of 10-15%, and potential permanent deferrals on gains
realized within a qualified opportunity fund. The entire Hall Labs
campus is located within Provo, Utah’s opportunity zone, which leaves
HVP ideally and immediately positioned to deploy capital into
investments that meet the strict requirements for operating businesses.
About Hall Venture Partners
Hall Venture Partners (HVP) is located in Provo, Utah and led by
world-class partners David Hall, Derek Weber, Matt Van Dyke and David
Kunz. HVPs Hall Opportunity Fund 1 will target opportunity zone
businesses as its portfolio companies. Each company will need to
demonstrate commercial viability and a strong return profile. The fund
will provide growth capital and access to resources from the Provo, Utah
region, which has been identified as one of the
nation’s top 3 “opportunity zone” clusters. The fund will accelerate
optimal expansion and timely exits of its investments. As an additional
benefit, the fund creates the potential for a
tax-advantaged “opportunity zone” investment allowing for deferrals of
capital gains. For more information, visit www.HallVP.com.
Contacts
SnappConner PR
Cheryl Snapp Conner
801-806-0150
info@snappconner.com