QOFs tracked by Novogradac reach $34.09b in equity raised

Qualified opportunity funds (QOFs) tracked by Novogradac reported $9.68 billion in equity investment in 2022, the biggest single-year total charted by Novogradac since the opportunity zones (OZ) incentive became part of the tax code at the end of 2017.

The 1,661 QOFs tracked by Novogradac (1,274 of which reported a specific equity amount raised) raised a cumulative $34.09 billion as of Dec. 31, 2022. That was a 39.7 percent year-over-year increase from the $24.40 billion reported at the end of 2021 and continued a three-year trend of similar investment totals: QOFs tracked by Novogradac reported $9.23 billion in equity raised in 2020 and $9.24 billion in 2021.

While 2022 saw the largest dollar-volume increase since Novogradac began tracking the data, much of that was due to a record-breaking first quarter, which saw an equity increase of $3.97 billion (41.0 percent of the full-year total). The fourth quarter of 2022 saw $1.40 billion in reported investment, a significa