Monday, June 22nd, 2020
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Like many people, Nick Parrish, managing director for Cresset Partners, believed that Opportunity Zones had started to gain momentum before COVID-19 hit.
“It was slow out of the gate,” Parrish says. “It was a program that was often talked about, but the actual capital activity was pretty minimal. I think it was because it was a new asset class, and there were complicated and evolving regulations.”
But early in 2020, things started picking up with a significant amount of capital flowing into the space. Cresset closed its first Qualified Opportunity Zone Fund in March and is targeting $400 to $500 million for Fund 2.
“Investors were getting deals done, and the strategy finally had its footing,” Parrish says. “Then COVID-19 comes along and takes the wind out of everyone’s sales.”
When that happened, Parrish says Opportunity Zone investments, like many other things, went into a “state of paralysis.”