CapZone Analytics Launches Tech-Enabled Compliance Platform for Qualified Opportunity Funds & Investors

  • Designed with the assistance of national Opportunity Zone (OZ) experts, CapZone Analytics’ Compliance Platform provides direct business value to private wealth managers and fund managers to monitor investment portfolios efficiently within a complex regulatory framework and radically reduce the time and resources required to manage compliance for Opportunity Zone investments.
  • CapZone Analytics’ Opportunity Zone compliance and risk management platform is the first technology solution designed to address the complex reporting requirements and compliance processes mandated by Federal regulations for Qualified Opportunity Funds (QOFs) under 26 U.S. Code § 1400Z-2.
  • CapZone Analytics invested over 20,000 R&D hours to build and automate this tech-enabled platform capable of supporting innovation, collaboration, and data integrity for the $180 billion Opportunity Zone industry bringing capital to low-income communities nationwide.
  • CapZone Analytics’ Compliance Platform enables Qualified Opportunity Zone funds and investors to employ technology-forward tools to track, manage, and control the extensive detailed financial, legal, and operational data required over the life of Opportunity Zone investments, through 2047, to ensure accurate reporting to the IRS.

Deep Ellum, TX—CapZone Analytics, the leading national provider of compliance risk management technology solutions for the $180 billion Opportunity Zone market, has announced the commercial release of its Compliance Platform, the first automated solution designed to meet the evolving needs of Qualified Opportunity Funds (QOFs) and Family Office investors and wealth managers.

“Today, Qualified Opportunity Funds face enormous challenges in the timely reporting of accurate information to the IRS,” said Jonathan Ewert, CEO of CapZone Analytics. “Compliance at every phase of the investment cycle requires fund managers to maintain significant control over an increasing volume of information about the financial and operational results of their investments. The velocity and complexity of this information accelerate during fundraising and harvest periods where data quality drives value. The strategic use of technology is the only way to capture, track, evaluate, and structure the information to keep pace with the changes that naturally occur throughout the investment cycle,” Ewert added.

A flexible, agile platform that operates on a single code base, the CapZone Analytics Compliance Platform applies radical efficiency to the large data stores required to manage OZ compliance continuously and efficiently. Consolidating and analyzing data across investors, funds, and OZ businesses—which can take days or weeks if done manually—can now be accomplished instantaneously and delivered through dynamic dashboards and in regular reports and updates to meet Federal and State regulatory oversight requirements.

“We chose compliance automation as our first solution based on countless hours of conversations and design sessions with leading OZ tax and legal professionals,” said Landon Johnson, Chief Marketing Officer of CapZone Analytics. “The experts’ real-world experience in managing complex OZ structures revealed that QOF managers and their investors are required to capture and track more operational information than their manual systems and processes are able to handle. Further, tracking and managing the decentralized sources of this structured and unstructured information poses a drain on resources. These findings were confirmed in our successful beta in 2022 where we stress-tested the platform based on real client fund structures,” Johnson added.

CapZone Analytics functions as a standalone OZ compliance platform. Its services are designed to extend throughout the entire OZ investment stack, which includes portfolio construction and monitoring, fund administration, financial management, business intelligence, and asset management systems. The extensive onboarding of investor, fund, and investment data, frequently decentralized and outsourced by fund management teams, is centrally managed by CapZone Analytics’ dedicated Client Success Team.

“The technology architecture has been designed for speed, scale, and security,” said Mark Herschberg, Acting Chief Technology Officer of CapZone Analytics. “The Compliance Platform supports the rapid development of a series of applications for the ingestion of large and complex data sets, the codification of that information consistent with Opportunity Zone regulations, and the distribution of information to a wide variety of decision-support systems. We want the platform to be as open as possible for the entire OZ ecosystem to build upon,” Herschberg explained.

Johnson added, “Compliance automation is the first in a series of solutions that CZA will deliver with the assistance of industry leaders. Our solutions are designed to remove the friction from the OZ investment process, monitor compliance and impact during the investment period, and track capital flows into communities that need it most. We plan future releases focused not only on enhancing workflows but also on impact reporting leveraging the census data of Opportunity Zones.”

About CapZone Analytics

CapZone Analytics converts complexity into compliance and delivers the confidence and control that Qualified Opportunity Funds need to maximize value. CapZone Analytics codifies all investor, fund, and business data and analyzes it in the context of the evolving tax law, revealing compliance issues and areas of business impact. CapZone Analytics’ compliance risk intelligence platform maps complex Opportunity Zone regulations onto a fund’s operations and provides alerts for potential areas of audit risk and other mandated regulatory deadlines. Clients and advisors can then focus valuable resources on areas of highest priority thus reducing internal effort, avoiding penalties, and maintaining the integrity of their funds.

For additional information contact:
Lydia Walter
CapZone Analytics