Opportunity Zone funds have raised more than $10 billion, exceeding expectations

Opportunity Zone funds have raised $10.09 billion as of the end of April, according to a survey conducted by accounting firm Novogradac. This total represents a 50 percent increase over the $6.72 billion that the firm reported near the beginning of the year.

The total invested in Opportunity Zones is likely significantly more than that reported number, as survey participation is voluntary and does not include a large number of proprietary or closely-held private funds.

Of the 621 Qualified Opportunity Funds tracked by the firm, 406 of them reported raising equity. The average equity raise among the 406 is $24.85 million. At least $100 million has been raised by 22 of the 406 QOFs.

Michael Novogradac, managing partner of the firm that bears his name, believes that the actual amount raised to date may be “double or triple” the reported amount of $10.09 billion. According to Novogradac, the federal government had originally estimated that between $10 billion and $13 billion would have been raised by Opportunity Zone funds by the end of 2019.

“OZ investment has clearly exceed[ed] original expectations,” Novogradac wrote.