How OZ 2.0 Is Changing Capital Flows

How is OZ 2.0 reshaping fundraising and investor behavior in Opportunity Zones?

GTIS Partners’ Peter Ciganik returns to the podcast to discuss OZ 2.0, capital raising trends, and his firm’s $850 million Opportunity Zone portfolio.

Guest: Peter Ciganik, GTIS Partners

• Peter Ciganik on LinkedIn
• GTIS Partners

About The Opportunity Zones Podcast

Hosted by OpportunityZones.com founder Jimmy Atkinson, The Opportunity Zones Podcast features guest interviews from fund managers, advisors, policymakers, tax professionals, and other foremost experts in the Opportunity Zones industry.

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Episode Summary

Jimmy Atkinson welcomes back Peter Ciganik, Head of Capital Markets at GTIS Partners, to discuss the state of Opportunity Zone investing in the wake of major legislative changes. GTIS Partners is one of the largest Opportunity Zone real estate firms in the country, with 17 developments currently underway, nearly 4,000 residential units in progress, and 2.5 million square feet of industrial development. In this episode, Jimmy and Peter dive into the current capital markets environment, the impact of Opportunity Zones 2.0, investor sentiment, and GTIS’s outlook for OZ real estate.

The Current State of Capital Markets

Jimmy begins by asking Peter for his perspective on how capital has been flowing into Opportunity Zone funds in August 2025, only weeks after President Trump signed the One Big Beautiful Bill Act into law. This legislation made the OZ program permanent, removing the sunset provision that had long been a source of uncertainty.

Peter responds that the market has seen a clear pickup in activity. He notes that the past two years were difficult fundraising environments across private markets, including Opportunity Zones. However, with permanence now in place, there has been an immediate boost in confidence among investors. He emphasizes that many were waiting for clarity before committing new capital, and OZ 2.0 provided exactly that.

Permanence Brings New Confidence

Peter highlights that permanence fundamentally changes how investors and fund managers approach Opportunity Zones. Previously, the looming 2026 tax inclusion date created a compressed timeline, which often discouraged long-term planning. Now, with no expiration, Opportunity Zones can be treated as a stable component of investment portfolios. Peter explains that this has already started to unlock larger pools of capital, including institutional investors that were hesitant under OZ 1.0.

Jimmy agrees, pointing out that the permanence of OZs is perhaps the single most important legislative change. He notes that the tax benefits are still critical, but permanence allows OZs to truly mature as a mainstream part of private equity real estate.

GTIS Partners’ OZ Track Record

Peter provides an overview of GTIS Partners’ role in the market. Across two Opportunity Zone funds, GTIS has raised $850 million of equity. That capital is being deployed into 17 developments nationwide, which together represent close to 4,000 residential units and 2.5 million square feet of industrial space.

He explains that GTIS has pursued a strategy of investing in growth markets with strong demographic fundamentals. Multifamily housing has been a major focus, given the nationwide housing shortage and affordability pressures. Industrial development has also been a core part of their strategy, driven by logistics demand and e-commerce growth.

Investor Behavior and Tax Motivation

Jimmy asks Peter how investors are currently thinking about OZs—are they focused mainly on the tax benefits, or on the underlying real estate fundamentals? Peter explains that for most investors, the tax benefits are the primary motivator. That said, he stresses that sophisticated investors are also looking closely at the quality of the projects and sponsors. With permanence now in place, investors are more willing to consider multi-fund strategies and long-term commitments, rather than just viewing OZs as a one-time tax play.

Peter also points out that transparency and reporting requirements in OZ 2.0 will help build further confidence. Investors want assurance that their capital is going into projects that deliver both financial returns and measurable community impact.

The Impact of Opportunity Zones 2.0

The discussion turns to the new features of OZ 2.0. Peter notes that reporting requirements, permanence, and new guardrails around compliance are all important steps forward. By ensuring greater accountability, OZ 2.0 enhances the credibility of the program in the eyes of investors and policymakers alike.

Jimmy emphasizes that one of the key criticisms of OZ 1.0 was the lack of reporting, and he agrees that the new transparency measures are essential for long-term sustainability. Both agree that these reforms will encourage even more participation, including from institutional investors who were previously cautious.

GTIS’s Investment Outlook

Looking ahead, Peter shares GTIS’s investment priorities. Multifamily housing remains a core focus, as affordability challenges and supply-demand imbalances continue across the country. Industrial is another area where GTIS sees long-term demand, particularly in logistics hubs and fast-growing metro regions.

Peter notes that the stability provided by OZ 2.0 enables GTIS to pursue larger and more complex projects with confidence. He explains that GTIS can now structure investments with longer horizons, which is especially important in development projects that may take years to fully realize.

Key Takeaways

• Opportunity Zone permanence has already increased capital flows and restored confidence among investors.
• GTIS Partners has raised $850 million across two funds, with 17 active OZ developments.
• Their portfolio includes nearly 4,000 residential units and 2.5 million square feet of industrial.
• OZ 2.0 introduces permanence, reporting requirements, and compliance guardrails, all of which improve program credibility.
• Investor behavior is still driven by tax incentives, but fundamentals and sponsor quality are increasingly important.
• With permanence in place, institutional investors are expected to play a much larger role going forward.

Conclusion

Jimmy closes by thanking Peter for sharing GTIS’s perspective on Opportunity Zones in this new era. The conversation underscores how far the program has come since its inception and how OZ 2.0 sets the stage for long-term growth. For investors, developers, and communities alike, the permanence of Opportunity Zones marks a turning point—transforming what was once a short-term incentive into a lasting framework for investment and development.