Tom E.
Short But Sweet
I was quite pleased by my experience with Liquid QOF I. The fund was short-lived but very well managed, especially given the relative novelty and consequent uncertainties of Opportunity Zone compliance. I found the manager to be simultaneously accessible, personable, efficient and well-versed in business practices. Compliance risks for the QOZ aspects of the fund were fully disclosed up front. The fund did not succeed as a QOF but I was, nevertheless, well rewarded for accepting those risks. Liquid QOF I was straightforwardly designed to be an aggressive implementation of a QOF. Within the rules and guidelines available at the time, the manager sought to make maximum advantage of short-term investments for funds awaiting long-term deployment. While succeeding spectacularly in that effort, the manager also remained vigilant with respect to evolving guidance for QOF compliance. Ultimately, it was determined that the fund model would not withstand IRS scrutiny and the manager decided to close the fund. I was very pleasantly surprised, however, by the returns that were achieved to that point. Quarterly dividends and final distributions were all timely made, and both far exceeded original expectations.