Colorado Outdoors Pearl Fund offers Investing Opportunity


From Colorado Outdoors:

From Do you know about the Outdoor Boom?

For wise investors, the great outdoors has never looked better.

Consider these facts:

• For the last 15 years, the Outdoor Industry Association has tracked U.S. participation in outdoor activities. Throughout this time period, participation has hovered around 48%. But in the wake of Covid, these numbers have skyrocketed to an all-time high of 69%.

• Outdoorsy, a global online RV rental and outdoor marketplace, has witnessed a staggering 4500% increase in bookings over the course of the pandemic.

• According to a recent study by the NPD Group, Backcountry equipment sales have grown 76% YOY through end of October 2020.

• The Fly Fishing industry has experienced an absolute tidal wave of new participation. 2019 alone saw nearly one million people take up the sport, and 2020 is on track to make those numbers pale by comparison.

• Finally, the U.S. Bureau of Economic Analysis now calculates the economic output from outdoor recreation across the U.S. at $788 billion. As such, Outdoor Recreation now contributes more to GDP than do the Broadcast/Telecommunications, Mining, Agriculture and Utilities industries.

Suffice to say, demand for outdoor products and never been greater

However, as a result of this phenomenon, outdoor product manufacturers are now in desperate need of capital to help fund incremental production capacity in the face of this extraordinary demand. And that’s where the Colorado Outdoors Pearl Fund comes in.

A QOZ Fund unlike any other

The Pearl Fund is a Qualified Opportunity Zone Fund designed specifically to fuel the growth of post-revenue businesses operating in the Outdoor Products Industry. Brands like Ross Fly Reels, Abel Fly Reels, Xcel Wetsuits, Level Gloves, Briko Helmets, Eisbar Ski Hats and Koda Nutrition have already benefited from Pearl Fund capital injection. And since the Pearl Fund is a Qualified Opportunity Zone Fund, investors will realize the remarkable financial benefits of investing in a QOZ fund.

Qualified Opportunity Zone Funds do lots of good — and they perform even better

The Qualified Opportunity Zone Program was created by the 2017 Tax Cuts and Jobs Act to encourage economic growth in underserved communities through tax incentives for investors who utilize Opportunity Funds to invest in these Zones.  And the financial benefits of investing in these funds is nothing short of remarkable:

• Investors can defer tax on capital gains reinvested in the Colorado Outdoors Pearl Fund until December 31, 2026, or when they sell their stake in the fund — whichever comes first.

• Investors receive an automatic 10% step-up in basis if they hold their investment for at least 5 years.

• If an investor holds that investment for 7 years, they receive a 15% step-up in basis.

• Investments held for at least 10 years receive a permanent exclusion from capital gains tax when the investment is finally sold.

Opportunity knocks

As you can see, there’s never been a better time to experience the upside of investing in the dynamic Outdoor Industry. So, if you’d like to learn more about the tremendous benefits of QOZ investing and the Colorado Outdoors Pearl Fund, please contact Doug Dragoo, General Partner, at 602-315-3344.


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