NEW YORK, N.Y. – David Robinson, the NBA star and Admiral Capital Group co-founder, is reported raising $50 million for the Texas investment fund. The funds will go straight to economically dejected neighborhoods in the country.
The NBA star-turned-investor is now in action to raise funds for the Blueprint Local. The federal 2017 Tax Cuts and Jobs Act gave birth to this opportunity zone investment platform. The law is carving out a tax break for all the investors who are spending their money into helping the marginalized sectors in San Antonio and Austin, where Blueprint will be directing the funds.
According to Robinson, he was convinced to invest because it can help the Alamo City. It is where he had spent most of his professional career in basketball.
Robinson said that the investment is towards the enhancement of the community. Uniting the people together and giving chance to the marginalized communities that had been deprived the opportunity to invest.
Robinson is the founder of the Admiral Capital. It is designed to deal with real estate deals and private equity that can contribute a positive impact on society. According to their official website, the firm has invested over $300 million in just 50 deals, and its total transaction value since its establishment has roofed up to $1.5 billion.
This opportunity zone legislation is engineered to use the investment in helping sections of the city that had been left behind. It also helps in increasing the value of the marginalized neighborhood without having to increase the rent that would steer the local residents away from the new and improved community.
All investors who leave their money in the community for 10 years will get tax breaks. According to Robinson, the primary goal of this law is directing the capital gains from other investments into the fund. Later on, they can take out their capital gains without having to pay for a tax penalty.
Robinson, called as The Admiral during this career in NBA said that it’s good to chance an investment into a very meaningful one by helping other people.
Brown Advisory, an investment firm, helps Blueprint Local with its operation, reaching almost $25 million. Robinson stated that the money would allow them to start the investment in zones that are already qualified.
The primary goal of Blueprint is not just to create temporary positive impacts, but bearings that will linger in the long run for the community to benefit. Robinson said that the scarcity of quality grocery stores would force other residents to go somewhere else just to purchase fresh products.
He also stated that investing in Blueprint Local can make a positive impact not limited to the NBA players but the entire Texans as well.