Monllor Capital launches $20M Puerto Rico Opportunity Zone Fund II
Monllor Capital Partners LLC, a private equity firm based in San Juan, has launched its second Opportunity Zone fund, seeking to raise $20 million to invest in businesses and projects located in federally designated low-income areas throughout Puerto Rico.
The new fund, Puerto Rico Opportunity Zone Fund II LP (PROZ II) is structured as a Qualified Opportunity Fund (QOF) and aims to take advantage of tax incentives available under Puerto Rico’s Act 60 and the 2017 federal Tax Cuts and Jobs Act. The incentives include deferral of capital gains taxes through 2026 and potential exclusion of gains on investments held for at least 10 years.
More than “95% of Puerto Rico is within a designated Qualified Opportunity Zone,” said José A. Torres, managing partner of Monllor Capital, highlighting the scale of eligible investment areas. The firm said it will focus on sectors including renewable energy, sustainable business and infrastructure.
Founded in 2018, Monllor Capital is a minority-owned firm. Its previous fund, now closed, invested in five local companies. For PROZ II, the firm is working with NES Financial as fund administrator and DLA Piper as legal counsel.
Managing partner Shawn Hanson said that Act 60 provides tax incentives such as reduced income and property tax rates, tax credits of up to 40% and tax-exempt distributions, which he said could increase after-tax returns for investors.
