LISC National
Opportunity Zones

Opportunity Fund Administration

Closing Services | Post-Closing & Ongoing Services | Additional Services
 

NMSC is a wholly-owned subsidiary of the Local Initiatives Support Corporation (LISC), the nation’s leading community development support organization. NMSC delivers creative financing solutions to expand economic opportunity and empower underserved communities across the country. We improve access to capital by adapting our services to meet the needs of our clients and partners.

NMSC offers its Opportunity Fund Administration services to entities managing Opportunity Funds around community-driven investments.
 

Closing Services

  • Assist in drafting and/or review of Opportunity Fund operating agreement
  • Create the Opportunity Fund legal entity, obtaining any required CDFI Fund approvals
  • Open and manage Opportunity Fund bank accounts
  • Manage “closing” flow of funds, ensuring funds are secured and that both the investor’s Opportunity Fund investment and the Opportunity Fund’s investment into qualifying Opportunity Zone property are documented accurately
  • Complete and assist in filing any required IRS, CDFI Fund or other agency documents
  • Set up Opportunity Fund books and records
  • Manage compliance timing requirements of investments per IRS regulations
     

Post-Closing & Ongoing Services 


Investor and Treasury Services

  • Process subscriptions/capital calls, redemptions, distributions, transfers and exchanges
  • Record investments into the Opportunity Fund and track future commitments
  • Record cash investments and/or purchases made by the Opportunity Fund into underlying Opportunity Zone investments and track future commitments
  • Invoice, collect and manage Opportunity Zone investment distributions due to the Opportunity Fund. Track investments and monitor and collect preferred returns or other required equity distributions
  • Record distributions received and any transfers and exchanges of underlying Opportunity Zone investments
  • Calculate, accrue, pay and/or collect asset management fees and third-party fees owed to and by the Opportunity Fund
  • Manage and record investor distributions/required payments made to investors

Accounting and Reporting

  • Manage and reconcile Opportunity Fund cash accounts regularly
  • Prepare quarterly and annual Opportunity Fund financial statements including balance sheet, income statement and investor equity
  • Provide quarterly and annual investment reports detailing investment activity and investment market values
  • Engage and manage external auditors and tax preparers, ensuring timely completion of all required reports

Compliance

  • Manage Sub-All (90% test)
  • Verify that the Substantial Rehabilitation requirement for each Opportunity Zone property investment is met
  • Monitor ongoing non-qualified financial property requirement at the Opportunity Zone property investment level (operating partnership)
     

Additional Services


Asset Management

  • Collect and review Opportunity Zone investment financial statements, and analyze against pre-closing proformas and annual operating budgets
  • Monitor and report on Opportunity Zone investment performance, focused on each investment’s ability to provide expected returns.
  • Monitor each Opportunity Zone investment’s plan and ultimate ability to unwind

Community Impact

  • Capture the community impact story of each Opportunity Zone investment
  • Document the community impact metrics of each Opportunity Zone investment by setting expectations prior to funding each investment, and gathering and analyzing data periodically after funding the Opportunity Zone investment
  • Provide impact report on Opportunity Zone investment to investors

Contact

Matt Huber, Senior VP & CFO
Email