PROVO, Utah--(BUSINESS WIRE)--On April 23, 2019, the U.S. Department of the Treasury published the second round of proposed Opportunity Zone regulations. The second round of proposed guidance addressed many outstanding questions related to investments in new and expanding operating businesses. As a result of the clarity provided, Hall Venture Partners (HVP) announced today that managing partners David Hall, Derek Weber, Matt Van Dyke and David Kunz have closed the first investment of $10M into its tax-advantaged venture fund, Hall Opportunity Fund 1.
Hall Opportunity Fund 1 is a $100M fund focused on venture growth businesses within the state of Utah. The fund is uniquely positioned to take immediate advantage of the opportunity zone regulations with a myriad of pre-vetted target opportunity zone businesses that have gone through a systematic process of incubation. The initial targets leverage the infrastructure, experience and execution of the Hall Family and the Hall Labs Innovation Campus, which has demonstrated a long history of successful technology inventions and company exits dating back to the 1950s. Today, there are more than 25 companies active in multiple sectors spanning seed stage to growth stage on the Provo, Utah technology campus.
“As other funds have been scrambling to figure out how to navigate the regulations, raise capital and source narrow-scoped investment opportunities, we are incredibly fortunate to be already working with a portfolio of 20-plus companies in one of the country’s top 3 Opportunity Zones,” said Van Dyke. “Hall Labs is providing the fund a systematic process to incubate and grow innovative technology and ESG companies for fund consideration. Each company must meet specific investment criteria including a strong return profile in addition to meeting OZ compliance. The ability for these companies to receive investment and grow within the designated zone makes the opportunity very compelling.”
Having a proven process, the right location, purpose-built opportunities, and a strong bench of partners, the HVP team is in a position to exceed the intent of the program while delivering strong returns for investors.
If applied properly, the opportunity zone legislation brings large benefits to investors, Van Dyke noted, by allowing deferral of capital gains, potential original gain reductions of 10-15%, and potential permanent deferrals on gains realized within a qualified opportunity fund. The entire Hall Labs campus is located within Provo, Utah’s opportunity zone, which leaves HVP ideally and immediately positioned to deploy capital into investments that meet the strict requirements for operating businesses.
About Hall Venture Partners
Hall Venture Partners (HVP) is located in Provo, Utah and led by world-class partners David Hall, Derek Weber, Matt Van Dyke and David Kunz. HVPs Hall Opportunity Fund 1 will target opportunity zone businesses as its portfolio companies. Each company will need to demonstrate commercial viability and a strong return profile. The fund will provide growth capital and access to resources from the Provo, Utah region, which has been identified as one of the nation’s top 3 “opportunity zone” clusters. The fund will accelerate optimal expansion and timely exits of its investments. As an additional benefit, the fund creates the potential for a tax-advantaged “opportunity zone” investment allowing for deferrals of capital gains. For more information, visit www.HallVP.com.