As the digital generation enters the labor-force and their disposable income rises so too will their desire to invest in next generation asset classes. Increasingly we are finding that means that social impact returns are nearly as important as financial returns. Asset classes that can maximize for both will some of the most popular products in coming years. This must be held in consideration alongside the instantaneity that is demanded by a generation that has never been without instant access.
The Urban Array Opportunity Fund, a for-profit Limited Liability Partnership (“UAOF” or “The Fund”), is an affiliate of the Urban Array Foundation (UAF or “The Foundation”) that works to provide a vehicle for private investors to invest in efficient development in Opportunity Zones; with dual bottom line goals to support the impact investing activities of the Urban Array Foundation, while also protecting investor principle and reducing tax burden.
It will invest primarily in Chicago Opportunity Zones with some broader US based investments in other Opportunity Zones. IRS FAQ
The Fund identifies properties to rehab and rebuild, and entrepreneurs to incubate and facilitate in the newly renovated spaces.
Supported by UAF and working in conjunction with building equity company Hanns & Erving, properties purchased by the fund are rehabbed and rebuilt for Entrepreneurs being incubated through business accelerator E.G. Woode. This allows UAOF to minimize costs of UAF and entrepreneurs in opportunity zones.
The specific investment principles followed create centers for innovation and growth enabling:
- Individuals to build themselves while growing their community
- Investors to make an impact while growing their portfolio
As assets are grown they may be sold back to the community members who contributed to them or UAF, allowing the fund to exit their position in the asset.
In order to maximize, tax incentives and returns, Investors money is locked into the fund for ten years. Dividends may be paid. Management fees of 2 and 20 are donated to, and used to pay the salaries of, UAF development and management teams.
The Fund has four main goals:
- Be a catalyst for high growth businesses and asset development;
- Serve an essential function in developing centers of entrepreneurial growth within the greater Chicago area;
- Support the Social Impact Investing activities of The Foundation under no obligation to participate in every project undertaken;
- Provide measured returns for investors by growing its asset base at very low cost.
The Urban Array Foundation is able to leverage a number of technological advancements in order to offer attractive opportunities to the UAOF. Including but not limited to:
- Social Enterprise Asset Management (SEAM) system;
- Simple and scalable After-Action-Reporting process;
- Process and resource management synergies;
- Closed loop equity management.
The Urban Array Opportunity Fund is the first iteration of what we believe will grow to be a world changing investment class. The Fund will support the activities of the Urban Array Foundation by lending seed investment to the community driven projects that The Foundation empowers using the open source SEAM platform.
Urban Array offers full-stack opportunity investment integration.