By Opportunity Zone Magazine staff
Leading global alternative asset manager Highmore has unveiled a real estate Opportunity Zone fund with a $200 million targeted capacity. The fund was launched in the first quarter of 2019.
“Highmore’s Opportunity Zone Fund pipeline is focused on gateway metropolitan areas where existing scarcity and rapidly growing demand give us confidence both in the intermediate and long-term upsides for these properties,” says Jon David Willingham, a partner at Highmore.
The fund is aimed at the institutional middle market and will be diversified by property type, geography and operating partners.
“Highmore’s shovel-ready $1-plus billion real estate pipeline is comprised of very strong institutional middle-market opportunities from a diversity of premier development partners across the U.S.,” says Willingham. “The conservative pro forma on each asset in our pipeline is very promising on a stand-alone basis, let alone now further de-risked through OZ incentives.”
Highmore's real estate operating partners have a long history and deep domain expertise across industrial, multi-family and office sectors working in their respective markets, which happen to be within Opportunity Zones.
Willingham says investors in Highmore’s Opportunity Zone fund can select between a diversified, multi-asset fund or a single asset co-investment given due diligence and approved by Highmore. The company says they provide full transparency, a no-conflict model and alignment of interest with investors.
“The open architecture of Highmore’s OZ fund allows us to flexibly work with both large investors as well as investors more suited to our comingled fund or those seeking a diversified real estate portfolio,” says Willingham.
The company said 2018 capital gains may be invested in the fund through the end of June 2019. From 2019 forward, capital gains may be invested on a rolling basis.
Highmore is headquartered in New York, with offices in London and Los Angeles. It advises $2 billion in assets on behalf of private and institutional clients.