Monllor Capital Partners has invested in Puerto Rico’s first Qualified Opportunity Fund focused on environmental, social, and economic impact (ESG) investing. To date, the fund has invested capital in three projects: Fusion Farms, Palmas Town Center, and SunBeat Energy.
In an interview with News is my Business, Monllor Capital’s founder, Managing Partner José Torres, explained that the Opportunity Zone Act is federal legislation that was created under the Tax Cuts and Jobs Act of 2017.
“That law is basically trying to incentivize people who have capital gains to move their money and invest it,” Torres said. “In Puerto Rico, because of the hurricanes and natural disasters, over 95% of the island was designated as a Qualified Opportunity Zone. A Qualified Opportunity Fund is a way for investors to invest in the program. So, think of it as the investor who invests in a fund, and the fund then invests in a business. Some people have created the fund to be the business itself. So it can be one and the same, but there are many reasons why people don’t recommend that.”
Torres noted that stakeholders have a certain time period to invest capital gains. For example, if it is a stock, they have some six months to invest capital gains in the Opportunity Zone Fund.
Read more at newsismybusiness.com