What Is a Qualified Opportunity Fund?

A QOF is an investment vehicle that files either a partnership or corporate federal income tax return and is organized for the purpose of investing in OZ property or business. A QOF provides professionally managed investment services to permit investors to capture the benefits of OZ investments without the investors having to evaluate the feasibility of individual projects, as well as the ongoing responsibility of asset management typically associated with equity investments. At least 90 percent of the investments of an QOF must fund eligible OZ investments.

Qualified Opportunity Funds

National Council of State Housing Agencies (NCSHA) estimates that, as of October 20, 2020, there are 218 QOFs that have raised $46.9 billion to invest in OZ eligible investments.