CapZone Analytics Announces Release 1.0 of Compliance & Risk Management Software Platform for Qualified Opportunity Zone Funds

  • Following commercial availability announced on January 18, CapZone Analytics has delivered the first round of CapZone Reports to Qualified Opportunity Funds, establishing a strong tax compliance and risk management foundation for Funds and investors consistent with 26 U.S. Code § 1400Z-2. As Opportunity Zone (OZ) Funds and investors prepare for increasing regulatory
    scrutiny, the CapZone Reports are critical.
  • The core of CapZone Analytics’ platform is the OZ Rules Engine, which codifies IRS regulations for investors, Funds, and portfolio companies. The OZ Rules Engine identifies compliance issues that may require the attention of Fund managers. Development is proceeding briskly beyond Release 1.0 to support the hundreds of rules embedded within IRS OZ regulations.
  • CapZone Analytics has engineered the OZ Risk Register to prioritize and mitigate critical compliance issues. This tool flags compliance and risk issues that are the most likely to occur, and that have potential for substantial financial impact on Qualified Opportunity Funds (QOFs). For these critical items, the OZ Risk Register tracks and manages mitigation steps to help ensure timely resolution. This powerful technology enables Fund Managers and compliance professionals to prioritize top issues and communicate important activities and required resources.
  • Central to the data ingestion for new clients, CapZone Analytics has deployed a secure compliance data room where compliance documentation is stored and cross-referenced to Fund
    structures, business operations, and OZ regulations. The ability to instantaneously locate and arm legal and tax professionals with information and data related to OZ issues speeds up
    workflows and reduces valuable time and resources needed to manage an OZ program.

Deep Ellum, TX—CapZone Analytics the leading national provider of compliance and risk management technology solutions for the $180 billion Opportunity Zone (OZ) market, has announced Release 1.0 of its Compliance Platform. The release marks a major stride in CapZone Analytics’ quest to help Qualified Opportunity Funds(QOFs) and their investors navigate the complex IRS and SEC compliance requirements of the OZ program.

“Our clients have asked us to keep our foot on the gas pedal, and that’s exactly what we’ve done,” said Jonathan Ewert, CEO of CapZone Analytics. “Smart QOFs are preparing for a rapidly evolving regulatory environment, where timely analysis and accurate reporting are just as important as they are in every other financial sector.”

Ewert continued, “Before rigorous transparency and impact reporting standards were in place, QOFs invested $180 billion, largely from Family Offices. With new legislation proposed recently, and a technology solution to manage the vast data and sophisticated analytics associated with the Opportunity Zone law, large corporations and capital allocators will have the confidence to make new investments in large scale infrastructure and businesses that create job growth and income growth in all 50 states and 16 U.S. territories.”

The cornerstone of the new automated reporting capability is the CapZone Report, which establishes and maintains direct linkages between OZ regulations, a QOFs portfolio company operations, and the data and documentation required to establish and maintain compliance for the full investment period. CapZone Analytics has mapped nearly 200 discrete rules for partnership investment structures alone, with each rule requiring between three and seven data points that combine to establish a compliance profile for the Fund and its investments. The platform automates the delivery of an at-a-glance view across all entities within a Fund using the most recent operational data.

“The moment we delivered the first CapZone Reports, our clients requested help identifying and prioritizing the compliance issues that surfaced,” recalled Landon Johnson, Chief Marketing Officer of CapZone Analytics.

Johnson added, “Most issues were driven by portfolio company operations and beyond the control of the Qualified Funds and their investors, who are accountable for accurate reporting to the SEC and the IRS. In response, we developed the OZ Risk Register, a tool designed for Fund Managers to prioritize compliance issues and communicate effectively to stakeholders inside and outside their organizations.”

The OZ Risk Register systematically assesses the likelihood that a risk will occur, and estimates the financial impact if it does occur, guiding Fund Managers to allocate resources wisely. “We want to help Fund Managers work better and smarter—this is a big step in that direction,” Johnson concluded.

“Technology is the only way a Fund Manager can handle this volume of financial and operational data, refreshing monthly, with any degree of accuracy and confidence,” said Mark Herschberg, Acting Chief Technology Officer of CapZone Analytics. “Release 1.0 is an important launchpad for the expansion of our platform. We have significantly scaled the number and complexity of reports for fund managers, which will help them stay ahead of the evolving regulatory landscape. Now, we can now turn our attention to enhanced analytics and automated data ingestion for client Funds and QOZBs,” Herschberg added.

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 and 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:
Landon Johnson
CapZone Analytics
Media@CapZoneAnalytics.com

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
Media@CapZoneAnalytics.com

CapZone Analytics Raises Series A Funding to Build First-of-Its-kind Opportunity Zone Compliance Platform

Deep Ellum, TX—CapZone Analytics, LLC, the only provider of tech-enabled compliance and risk management for the Opportunity Zone marketplace, has completed a first closing on its targeted $10 million Series A Preferred round. Terms of the investment were not disclosed.

“Through our work with top OZ experts and thought leaders, we have established a data-centric approach to monitoring Opportunity Zone compliance and protecting tax advantages for OZ investors,” said Jonathan Ewert, CEO of CapZone Analytics.  “Institutional investors recognize that without the strategic use of data to inform investment decision-making, they are not doing enough to manage the information that is reported to the IRS.”

CapZone Analytics is executing on an advanced product roadmap to develop the industries’ first data-centric approach to compliance and reporting. The Company plans to use the new funding to accelerate product development and add to its leadership team. CapZone Analytics is a Qualified Opportunity Zone Business, offering its investors significant tax advantages along with the potential to be a leading solution for the $180 billion Opportunity Zone marketplace.

The Series A fundraising round builds on CapZone Analytics’ momentum. The Company already has commitments from numerous Qualified Opportunity Zone Funds to participate in a BETA release in the fourth quarter of 2022. The BETA is designed to prove the capabilities of CapZone Analytics’ platform to capture data, execute analytics, and provide alerts and reports to fund managers and investors. Following a successful BETA, the Company is planning a commercial launch in early 2023.

“We see this as an opportunity to transform the way America invests in itself,” said Landon Johnson, Chief Marketing Officer. “By aligning investors with the needs of Opportunity Zone communities and empowering a compliance and reporting program at scale, we believe the OZ program can deliver on its promise.”  “We are eager to offer CapZone Analytics services to investors and fund managers interested in optimizing their investments and protecting their tax advantages,” Johnson added.

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. The company’s compliance risk intelligence platform maps complex Opportunity Zone regulations onto a funds’ operations and provides alerts for potential areas of audit risk. 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 fund.

CapZone Analytics Announces Key Additions to Its Executive Leadership Team

Deep Ellum, TX—To support the creation of the industry’s first technology platform for Opportunity Zone compliance and risk management, CapZone Analytics has announced key additions to its senior leadership team.

Landon Johnson joins CapZone Analytics as Chief Marketing Officer and will be leading the company’s product development and go-to-market planning and execution. Landon comes to CapZone Analytics with 25 years of experience scaling and optimizing technology-based businesses in a variety of industries including fintech, cybersecurity, healthcare, and business intelligence.

Serving as CapZone Analytics’ Chief Technology Officer, Mark Herschberg will leverage his expertise in building large-scale fintech platforms to lead the companies engineering, data science, and cybersecurity teams. Mark chairs the IEEE HTTPSI standards committee, is a competitive ballroom dancer, and is the author of The Career Toolkit: Essential Skills for Success That No One Taught You and the creator of the Brain Bump app.

Coming onboard to lead CapZone Analytics’ anticipated rapid growth is new Chief People Officer Jaime Carter. Jaime contributes her experience building highly effective human capital strategies at complex organizations such as Insperity and CareerBuilder.com. She aspires to build the repeatable model for scaling Qualified Opportunity Zone Businesses within the communities they serve.

Jarmal Riley joins CapZone Analytics as Vice President of Business Development. Jarmal brings deep experience in technology sales with companies such as Cisco and Toshiba and has years of experience building a strong sales culture and client relationships. His focus will be to expand on CapZone Analytics’ considerable strategic partner network.

“I’m extremely proud of the team we are building at CapZone Analytics,” said Jonathan Ewert, company CEO. “This is a once-in-a-lifetime opportunity to build a solution that an entire market is desperately seeking. It’s a dream to do it with professionals of the caliber of Landon, Mark, Jaime, and Jarmal.”  “Together, these leaders accelerate our ability to power the promise of the Opportunity Zone program and deliver intelligent, data-centric risk and compliance management for OZ investors and fund managers,” Ewert added.

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. Its’ compliance risk intelligence platform maps complex Opportunity Zone regulations onto a funds’ operations and provides alerts for potential areas of audit risk. 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 fund.