Confusion is mounting over real estate’s most buzzed-about federal program, but there still may be an excess of players trying to get in on the action.
It was a telling moment for those fixated on Opportunity Zones.
“Who the hell is EJF and their expertise as it relates to real estate?” Anthony Scaramucci asked on a December conference call to promote his $3 billion Opportunity Zone fund.
The rhetorical question seemed to be an attempt to reassure potential investors that EJF Capital would be a qualified partner for Scaramucci’s firm, SkyBridge Capital. But the former White House communications director’s swagger wasn’t enough to move the needle — and the two hedge funds parted ways a month later.
SkyBridge attributed the split to concerns from its distribution partners that EJF didn’t have enough experience managing real estate funds. “It’s a difficult investment environment,” the firm’s president, Brett Messing, told The Real Deal. “People get more risk-averse. And being risk-averse means bringing your clients a track record and someone who might be a little more known for being associated with real estate.”
therealdeal.com
By Rich Bockmann and Eddie Small | Research by Yoryi De La Rosa and Kyna Doles
February 01, 2019 09:00AM