Opportunity Zone Magazine Opportunity Zone Magazine Volume 1, Issue 1 | Page 66

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OPPORTUNITY ZONE MAGAZINE | VOLUME 1
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ISSUE 1
rural, tribal and urban areas. New Mexico lacks financial
intermediaries who are familiar with the opportunities in the
state, but there are several investment gems awaiting investors.
A gem is a gem because it’s hard to find. New Mexico has
not participated in the rapid rise in valuations fueled by the
recovery in major markets. Equity is a scarcer commodity in
this state than in others. That’s good news for investors as
new, relatively unknown opportunities here can offer better
returns relative to more efficient and well-established markets.
It’s good news for the targeted investments as well. Nowhere in
the country can you close wealth, education and job-creation
gaps such as those that exist in New Mexico. The state with
the highest per capita number of PhDs also ranks 49th in
education. The state that receives more than $6 billion a year
in federal spending on research and development also has
the highest rate of children living in poverty. The state that
is the birthplace of the many technologies has generations of
families living without water, electricity, broadband, and even
access to nearby medical facilities, grocery stores, and gas
stations. Their need is an opportunity.
And the Opportunity Zone legislation is just the accelerant
needed to make it happen. Emerging fund managers with the
expertise and knowledge to undertake a triple bottom line
approach to investing can generate a solid return on investment;
Emerging fund managers
with the expertise and
knowledge to undertake a
triple bottom line approach
to investing can generate a
solid return on investment;
stimulate economic activity
and create jobs; and create
positive social impact.
stimulate economic activity and create jobs; and create positive
social impact. The challenge for the Opportunity Fund industry
is to combine institutional quality fund management expertise by
employing the services of specialized professionals who provide
investment analysis, due diligence, and full documentary support
on a deal-by-deal-basis with economic development disciplines.
In addition, these Opportunity Fund managers need to be
willing to engage with federal and state agencies, non-profits,
and philanthropic organizations to leverage the programs and
services of these stakeholders.
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