Equity2 is a mission-driven impact investment firm founded to provide patient capital for new and growing businesses and community-enhancing projects. We believe successful investments provide attractive returns while creating shared value for both investors and communities.
Our expertise lies in utilizing Qualified Opportunity Zones as a tool for marrying capital with impact. At Equity2, we believe in the power of combining both definitions of equity to achieve positive social and economic returns.
1. the quality of being fair and impartial.
“equity of treatment”
synonyms: fairness, fair-mindedness, justness, justice, equitableness, fair play
2. the value of the shares issued by a company.
“she owns 62% of the group’s equity”; “the builder owns 25% of the equity in the property”
synonyms: value, worth, valuation; ownership, rights, proprietorship, right of possession
Equity2 works closely with AltCap, a successful Community Development Financial Institution that has facilitated nearly $200 million in investments in underserved communities. Our established partnerships with local leaders in the Opportunity Zone space include Polsinelli and Columbia Capital Management. These relationships provide strategic institutional knowledge and expertise, helping us deliver high-quality, high-impact investment opportunities.
What are Opportunity Zones?
Opportunity Zones were established by Congress in the Tax Cuts and Jobs Act of 2017 to spur economic development and job creation in distressed communities. Designed to encourage long-term private investments in low-income geographies, Opportunity Zones offer a frictionless way for investors to dedicate all or a portion of their capital gains to spur catalytic real estate and community-based development projects as well as seeding the next generation of enterprise in distressed communities all across the country. In exchange, investors get a graduated series of federal tax incentives tied to long-term holdings.
By investing the capital gain into a Qualified Opportunity Fund, the Opportunity Zone tax incentive offers individuals or businesses three primary federal tax benefits on all or a portion of the capital gain resulting from the disposition or liquidation of a wide variety of capital assets.
Benefit #1: deferral of capital gain
Investors receive a temporary deferral of tax on capital gains invested into a Qualified Opportunity Fund. The investment must be made within 180 days of the event creating the gain. The period of deferral ends the earlier of 1) the date the investment in the Qualified Opportunity Zone is sold or exchanged, or 2) December 31, 2026.
Benefit #2: partial exclusion of deferred gain
The partial exclusion of deferred gain benefit provides investors a step-up in basis, the amount of which is contingent on the length of time they maintain the investment in the Qualified Opportunity Fund. If the investment is held for five years, 10% of the original gain is eliminated. If it is held for seven years, an additional 5% is eliminated. In total, the partial exclusion benefit allows investors to in effect eliminate up to 15% of the original capital gain from taxation.
Benefit #3: exclusion of additional gains
If the investment in the Qualified Opportunity Fund has been held for 10 years, any additional gain realized on disposition of the investment in the Qualified Opportunity Fund (above the amount recognized in 2026) is tax free.
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