You can raise from as many QOFs as you like, but each would need to meet the qualification testing.
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How many QOFs can I receive OZ funds from?
I am a developer of a large mixed-use project in Miami looking to raise $100 million in OZ capital as a fraction of the capital stack. Can I receive OZ investment capital from a number of QOFs? Or am I only allowed to receive the OZ capital from one QOF exclusively from the beginning of my raise?
Answers
You can receive from any number of QOFs, just be mindful of the other factors like the securities laws and tax laws, which may otherwise limit the numbers.
A Qualified Opportunity Zone Business can accept investment from an unlimited number of QOFs. However, a QOF cannot invest in another QOF, so you'll need to be sure that you've structured your project with a lower-tier QOZB that owns/develops the property and can accept investment from multiple QOFs.
A QOZB can have as many QOF investors as necessary to reach the investment target. As a project sponsor, you can provide a QOF to pool capital from investors who don’t have a QOF that will only invest in the designated QOZB. That can be supplemented by direct investment from other QOFs buying a direct interest in the QOZB.
You can receive capital from as many or as few QOFs as you like. There is no restriction. You simply need to ensure your entity is a QOZB and follow the corresponding compliance rules.
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