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Catalyst Opportunity Zone Impact Fund - 2019 Overview Deck


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For investors who wish to defer and reduce capital gains, make tax-exempt returns, while making impact investments, we offer an intelligent way to invest in Opportunity Zones
We have assembled a world-class team, with expertise in investment, risk assessment and community impact. We utilize a proprietary technology to assess a multitude of data points, form strategic partnerships with other funds, and private business innovators. We optimize public grants and private sponsorships, to invest at scale in Qualified Opportunity
Zones across the United States.
Andrew Roettger, Founder/Managing Partner/Tax Strategy
Chris J Snook, SVP Business Development & Strategic Partnerships
General Counsel, Frank Esposito
Legal Firm, Wilson Sonsini
Goodrich & Rosati
Development Board Chair, Hans Galland
Investment Team Chair, Robert Jersey
Investment Team, Chris Engdall

Published in: Investor Relations
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Catalyst Opportunity Zone Impact Fund - 2019 Overview Deck

 ZONES THESMART WAYTOINVEST I N V E S T I N G W I T H I N S I G H T & I N T E L L I G E N C E T O M A K E A D I F F E R E N C E C O M P A N Y I N T R O D U C T I O N & I N V E S T M E N T O V E R V I E W 2 0 1 9 Opportunity Zone Impact Fund Catalyst
  2. 2. Welcome For investors who wish to defer and reduce capital gains, make tax-exempt returns, while making impact investments, we offer an intelligent way to invest in Opportunity Zones. We have assembled a world class team, with expertise in investment, risk assessment and community impact. We have developed a proprietary technology that is a financial analytical tool inspired by MIT’s CityScope platform to assess a multitude of public and private data. We work in strategic partnership with other QOZ funds, city leaders and planners, and private business innovators. Our QOZ fiber analytics platform analyzes overlaps with Opportunity Zones, public grants, enterprise zones, state and federal tax credits, private sponsorships. and impact investment funds to invest at scale in Qualified Opportunity Zones across the United States. Opportunity Zone Impact Fund Catalyst
  3. 3. The Catalyst Opportunity Zone Impact Fund brings together funding, technology, and strategic partners to invest in innovative and high impact projects across the United States. COZIF is the first fund of its kind to use data analytics and machine learning to identify and evaluate potential projects and businesses based on hundreds of data points then put investors capital to use on profitable projects that can transform a community. We work with mayors, economic development officers, and city planners to plan how a particular project will help their communities achieve its objectives. On our Investment Board, and in our key leadership we have investment and risk analysts, real estate and tech experts from some of the largest funds in the U.S. By analyzing the investment details of each project and aligning ourselves closely with city planners and community leaders, we are able to get preferential access to projects at their earliest stages and maximize deal flow. We invest not only in real estate, but in businesses and infrastructure that is pivotal to community reinvigoration and wealth generation. The Fund uses data driven analytics, interactive computation, investment and real estate analysis, and AI to assist in maximizing returns for our investors, continually evaluate the portfolio, measuring data as well as create positive social impact for the communities within which we invest. Who We AreT H E C A T A L Y S T O P P O R T U N I T Y Z O N E I M P A C T F U N D
  4. 4. Chris Engdall Chris was Senior Managing Director of Risk Management at Protégé Partners, LLC, a $40 billion+ fund of funds. Prior to joining Protégé, he was Senior Managing Director at O’Connor & Associate. Mr. Engdall has 35 years of securities industry experience in trading, clearing and risk management. Robert S. Jersey Bob is Partner, President and CEO of Gar Wood Securities, LLC, with more than 45years of experience in the securities industry. He formed GarWood Securities, LLC, an institutional FINRA/SEC/NFA broker dealer that services money mangers, family offices and high net worth individuals. Prior to establishing Gar Wood Securities, LLC in 2004, Bob worked at as founder and manager of ABN AMRO’s Prime Brokerage Unit, Business Manager for ABN AMRO’s Corresponding Clearing unit, Associate Operations Manager for Montgomery Securities, Business Manager for The Chicago Corporation Correspondent Clearing Unit, and at Bache & Co. Key Leadership Andrew Roettger Andrew is a C Level corporate advisor in Silicon Valley, San Francisco, New York and London. Andrew was a founding member of the London International Financial Futures Exchange, has worked on the ECB Systemic Risk Board, member of the Chicago Board of Trade, Pacific Stock Exchange, European Options Exchange, and currently runs a private equity fund and has for 25 years run a strategic tax advisory service. He is an alumni of Boston University and Sloan School of Management. Andrew Garnock Andrew is a strategic advisor with over twenty years of experience in the financial industry. He has co-founded a private hedge fund, which managed a derivate trading portfolio of over $200mm. His investment resume boasts a broad array of companies from technology, consumer discretionary, health and medicine, real estate, mining and more. BOARD OF DIRECTORS/INVESTMENT BOARD INVESTMENT BANKING RISK ANALYSIS STRATEGIC INVESTMENT TAX STRATEGY
  5. 5. Key Leadership Chris Snook Chris is a Managing Partner at Launch Haus, a venture building firm and growth accelerator, early stage media, digital agency, event, and technology related businesses. He is also the bestselling author of Digital Sense (Wiley 2017) and the forthcoming book The Opportunity Age (Q4 2020) Founder and Chairman of the Sandcastle Incubators. He publishes an enterprise and investment grade media platform covering the global economy and is the Founder and Chairman of the Sandcastle Accelerators. BUSINESS & CORPORATE DEVELOPMENT LEGAL COUNSEL Frank Esposito Frank sits on the Boards of some of the fastest growing companies in America. He has represented Fortune 500 clients and counseled newly formed technology, media and entertainment companies, offering insight into the inner workings of some of the most successful corporations in America. He routinely represents the interests of ultra high net worth individuals in relation to their personal dealings and business opportunities. LEAD TECH ADVISOR Dave Rauchwerk Dave Rauchwerk is a serial technology- entrepreneur and investor. His work spans a broad spectrum of technologies, business models and geographic locations. He has help create hardware and software products used by millions of people in over 100 countries. His work has been featured in major print, television and online media including: CNBC, BBC, Fortune, Wired, Time, Popular Mechanics, EEtimes and NPR. Paul Stein Paul is a co-founder of SKS Partners and has over 35 years of real estate experience in leasing, acquisition, asset management and disposition of commercial properties. From 1989 until founding SKS, Paul was V.P. and Director of Marketing for The Shorenstein Company, one of the nation’s largest privately held real estate development and asset management firms. RE PROJECT ADVISOR
  6. 6. Catalyst is the first fund of its kind to develop a financial data driven analytics platform, utilizing interactive computing and AI to assess and adjust a multitude of factors to identify and evaluate projects. Inspired by MIT Media Lab’s City Scope Platform, Catalyst has developed its own propriety data analysis tool specifically for use in Qualified Opportunity Zones. The original platform was developed to simulate the impacts of interventions on urban ecosystems prior to detail-design and execution. Catalyst’s new platform allows us to fully analyze the placement, scale, impact and financial feasibility of these projects. Being the only Opportunity Zone Fund to have developed this proprietary technology, gives us the advantage in deploying funds more effectively and responsibly, and to measure data and impact as the investment matures. Our approach is to work with cities and municipalities in a highly collaborative fashion, to understand their objectives, and to work with them to achieve their goals through dynamic investment in the right kind of business and real estate projects. In addition to the proprietary technology, we have gathered an unprecedented professional team of real-estate industry veterans, investment professionals, visionaries in city and regional planning, and community leaders. This differentiates us from other Opportunity Zone funds. BackgroundT H E C A T A L Y S T O P P O R T U N I T Y Z O N E F U N D
  7. 7. Risk Assessment – using our unique technology and methodology to understand the ROI parameters and potential for exponential transformative growth. Modeling – measuring the economic and development variables and as well as understanding what city officials and community leaders want to achieve for any given project. Financing - being able to directly fund projects, partner with other QOZ and Social Impact funds, utilize grants, tax credits and traditional forms of real estate financing. Activation - bringing in strategic partners as anchor tenants to build capacity and create wealth in the community. Measure Impact – we go beyond IRR – our duty to our investors – to understand the impact a particular project has on the community to put in place the metrics that matter in terms of density, job growth, housing, and wealth creation. The Fund & Our Approach 4. Activation 1. Risk Assessment 2. Modeling 3. Financing 5. Measure Impact
  8. 8. T H E P R O G R A M A N D H O W I T W A S D E V E L O P E D What are Opportunity Impact Zones? Through a nomination and designation process, areas that meet certain criteria as set forth in the new tax reform, have obtained this status. In an effort to attract private funding for projects in these areas, the IRS provides benefits to long term investment. Created by the Investing in Opportunity Act, a part of the Tax Cuts and Jobs Act of 2017, this program operates with less restrictions than previous, similar programs. Since it does not operate on a tax credit basis, the program allows funds, such as this one, to work without a limitation on the number of benefits issued. There is also the freedom of the fund being able to invest in a wide variety of impact driven development, and with no limitation on the amount of deployed. All 50 states, the District of Columbia, and 5 U.S. possessions, contain Opportunity Zones, in addition to Puerto Rico. Composed of a wide variety of communities, there are currently over 8,700 designated zones with a population of 31 million plus individuals. These zones are intended to develop or re-develop economically transitioning areas, the areas that qualify for the program are designated by census tract. Capital gain investment is reduced in stages. A 5 year investment equals a 10% reduction in capital gains, 7 years equals 15% reduction, 10 years equals 15% reduction in cap gains and exemption from all income derived from the original invested capital.
  9. 9. Investment Opportunity What are Opportunity Zones Where are they How are they structured • Economic development tool designed to encourage growth and job creation • Underserved communities in which new investments may be eligible for preferential tax treatment The Economic Innovation Group developed Opportunity Zones in 2015 to address the capital challenges facing many communities across the U.S. and to spur investment and develop in those designated places • Qualified Opportunity Zones exist across all 50 states, the District of Columbia and five U.S. territories, inclusive of all of Puerto Rico • There are over 8,700 QOZs designated zones Market dynamics and real estate fundamentals differ from one QOZ to another, and they do not all offer the same benefits and opportunities • Businesses and Real Estate property assets located in QOZs are deemed eligible for investment • A Qualified opportunity Fund ("QOF") must be structured as a corporation or partnership that holds at least 90% of its assets in Qualified Opportunity Zones Either development or substantial improvement of existing assets (required on a 1:1 basis) within 30 months of acquisition OPPORTUNITY ZONES EXPLAINED
  10. 10. Expected capital appreciation of 7-10% annually tax exempt with a 10 year investment The tax benefit of deferring existing capital gains tax. 5, 7 and 10 year stepped tax benefit. The BenefitsT H E B E N E F I T S T O T H E I N V E S T O R 8,700 designated Opportunity Zones, 31 million plus individuals and over 100,000 innovative developments, this is an opportunity to change and improve the American landscape. The true benefit of the Opportunity Zone Fund, capital gains deferment, the tax free appreciation created within the fund, and the confluence of new development, new business, and the advantage of the synergistic investment environment. Making a difference by creating jobs & building communities
  11. 11. • defer realized gain from appreciated asset, in most cases an investor must reinvest the gain into a QOF within 180 days of realizing the gain • The 180-day period ends when capital is contributed to the applicable Qualified Fund, not when capital is committed • May defer capital gains tax until the "Recognition Date" defined as the earlier of the date on which the investment is sold or 12/31/2026 If the investor holds a QOZ investment for: • at least 5 years, then 10% of the deferred gain is permanently forgiven (tax paid on 90% of deferred capital gain) • at least 7 years, then an additional 5% (total of 15%) of the deferred gain is permanently forgiven (tax paid on 85% of deferred capital gain) The BenefitsTHE BENEFITS TO THE INVESTOR Deferral of recognized capital gainsReduction of capital gains Elimination of capital gains Today (2019) 2024 2026 2026 YE 2029 & Beyond Invest capital in QOZ Fund Become eligible for10% tax reduction on deferred capital gains Become eligible for 15% tax reduction on deferred capital gains Original Capital Gains Tax Due No Capital Gains Tax on QOZ Fund Investment appreciation If an investor holds a QOZ investment for at least 10 years, then no tax is paid at all on any appreciation of the deferred capital gains in the QOZ investment
  12. 12. Strategic Partners
  13. 13. • The Catalyst Opportunity Zone Impact Fund should be considered a long-term commitment and illiquid by nature. • You have the option to redeem your investment at 5, 7 or 10 year anniversary liquidity windows. Each window is a one time election, and is subject to the taxation rules as determined by the IRS. Please note that you must hold your shares for 10 years to receive the full tax-exemption on income. • Capital gains, dividends and income will be accumulated by the fund and will be fully distributed at the end of the 10 year term unless the investor elects to reinvest • There is a 2% annual management and administration fee, of total asset value, and a 20% performance fee after 5% ROI. The Terms
  14. 14. Risk Factors All investments, including real estate investments in Opportunity Zones, are speculative in nature and involve substantial risk of loss. We encourage our investors to invest carefully. We also encourage investors to solicit and review personal advice from professional investment advisor(s) and to make independent investigations before acting on information that we publish. Much of our information is derived directly from information published by third parties and/or submitted to governmental agencies, which we believe to be reliable sources, but are without independent verification. Therefore, we cannot make assurances that the information is accurate or complete. We do not in any way warrant or guarantee the success of any action you take in reliance upon our statements or recommendations and it is incumbent upon you to conduct your own due diligence prior to investing. Past performance is not necessarily indicative of future results. All investments carry risk and all investment decisions of an individual remain the responsibility of that individual. There is no guarantee that systems, indicators, or signals will result in profits or that they will not result in losses. All investors are advised to fully understand all risks associated with any kind of investing they choose. Hypothetical or simulated performance is not indicative of future results. Unless specifically noted otherwise, all return projections provided in our websites and publications are based on hypothetical or simulated investing. We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those projected, because hypothetical or simulated performance is not necessarily indicative of results. Do not enter any investment without understanding it thoroughly.
  15. 15. Forward Looking Statements Various statements contained here, on websites, in presentations, and elsewhere, including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, are forward-looking statements. Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as“anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends” and similar words or phrases. Accordingly, these statements are only predictions and involve estimates, known and unknown risks, assumptions and uncertainties that could cause actual results to differ materially from those expressed in them. Our actual results could differ materially from those anticipated in such forward-looking statements. Any or all of our forward-looking statements may turn out to be inaccurate. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. We have provided links to certain other web sites that may or may not provide material that is informative and any information contained therein should not be considered a representation by the Company as to facts or materials contained therein. These forward-looking statements may include projections and estimates concerning the timing and success of strategies, plans or intentions. We have based these forward-looking statements on our current expectations and assumptions about future events. These assumptions include, among others, as they relate to investing in Opportunity Zones, our projections and expectations regarding: market trends in the single-family home rental industry and in the local markets where we operate, our business strengths, our ideal tenant profile, the quality and location of our properties in attractive neighborhoods, our ability to create a cash flow opportunity with attractive current yields and upside from increasing rents and cost efficiencies and our understanding of our competition and general economic, demographic and real estate conditions that may impact our business. While we consider these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control and could cause actual results to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Investors should not place undue reliance on these forward-looking statements. We undertake no obligation to update any forward- looking statements to conform to actual results or changes in our expectations, unless required by applicable law.
  16. 16. ThankYou C O M P A N Y I N T R O D U C T I O N & I N V E S T M E N T O V E R V I E W 2 0 1 9 a n d r e w @ c a t a l y s t o p p o r t u n i t y z o n e . c o m 4 1 5 . 3 0 0 . 7 5 5 7 c h r i s @ c a t a l y s t o p p o r t u n i t y z o n e . c o m 4 1 5 . 2 9 5 . 2 5 6 2 2 9 6 5 C L A Y S T R E E T S A N F R A N C I S C O C A 9 4 0 2 5 Contact Opportunity Zone Impact Fund Catalyst