Introducing The Pearl Fund: The First Venture Capital Opportunity Zone Fund Opens in the U.S.
NEW YORK & SCRANTON, Pa.–(BUSINESS WIRE)–The Pearl Fund (www.thepearl.fund)
today announced the launch of a new investment vehicle focused on
Opportunity Zone businesses. Following the recent traunch of Opportunity
the 2019 Fund will raise $25 million from investors with capital gains
who are seeking tax-free venture capital returns.
The specialized boutique fund focuses on three key areas:
Generating high returns that will be completely tax mitigated to
investors via Opportunity Zone tax laws. The Pearl Fund is a
Qualified Opportunity Zone Fund as designated by the IRS and is an SEC
Regulation D: Rule 506(c) private placement compliant fund. There are significant
tax benefits for investors who put their capital gains into
Qualified Opportunity Zone Funds within their 180-day window.
Early-stage startups that can yield a 10X or more return. The
Pearl Fund focuses exclusively on high-potential, early-stage startups
that can generate greater economic impact for their communities, while
delivering significantly higher returns for investors than real-estate
specific Opportunity Zone funds.
Qualified Opportunity Zones in New York and Pennsylvania. While
establishing the nation’s first Opportunity Zone incubators™, the Fund
is ideally located in two of the hottest locations in the nation: The Brooklyn
Navy Yard–a 300-acre waterfront park with 4.9 million square feet
which now has some 400 companies that generate $2.3B in annual
revenue, which is expected to triple by 2020 as New York continues to
beat out San Francisco as the world’s best
city for tech; and North East Pennsylvania’s Jessup
Small Business Center –a 132-acre mixed-use park that is not only
a designated Opportunity Zone but also a Keystone Opportunity Zone and
a Keystone Innovation Zone, which affords businesses located here
special Federal, State, and City tax advantages.
“There couldn’t be a more opportune or exciting time to launch our fund
than now,” said Brian Phillips, founder and managing partner of
The Pearl Fund, who brings more than three decades of experience as a
serial entrepreneur and expert on emerging economies. “We will be
working closely with our portfolio companies to ensure high returns for
our investors who are seeking to diversify their portfolios at such an
Mr. Phillips, who has been a founding member of over a dozen startups,
has spent time working with and advising hundreds of SME entrepreneurs
for Goldman Sachs in dozens of countries including Kenya, Nigeria,
Brazil, and India. Additionally, he is also a trusted advisor to Ivy
League faculty on how to convert their inventions into viable businesses.
Opportunity Zone businesses: a ‘sweet spot’ for investors with
measurable economic development and social impact
Opportunity Zone venture capital has the potential to generate stronger
returns than similar investments in real estate. As with venture
investing in general, the target returns for Opportunity Zone business
investing is at least 10X, with the holy grail being to fund the next
Apple or Google (by comparison, average real estate investments target
returns are 2-3X). Further, a 2014 Goldman Sachs study
found that investment in rapidly scaling small-to-medium enterprise is
the most effective way to drive economic development.
The news of the Fund’s launch follows the recent announcement that The
Pearl Fund has added several key
advisors who bring diversified expertise across business development
strategy, marketing, and public relations. To register to receive more
information, visit www.thepearl.fund.
About The Pearl Fund
The Pearl Fund is the first Opportunity Zone fund that is also a venture
capital fund investing in early-stage startups and their founders. Led
by serial entrepreneur and global economic development expert Brian
Phillips, who has been a founding member of over a dozen startups (two
IPOs, two acquisitions and one sold via an MBO), The Pearl Fund focuses
on high-potential businesses that can yield a 10X+ return. For more
information, visit www.thepearl.fund.