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What happens if an investor chooses to redeem from Origin QOZ Fund III prior to being in the fund for at least 10 years?

If an investor chooses to redeem prior to being invested for at least 10 years, they may not realize any or all of the potential tax benefits offered by the QOZ investment. In addition, investors who redeem from Origin’s QOZ fund prior to 10 years would be subject to the equivalent of an “early redemption” penalty, which functions as a discount to the NAV of their account upon redemption. Refer to Summary of Principal terms in the fund’s PPM for additional details regarding investor redemption and the discount schedule for investor redemptions made prior to 10 years.

If an investor chooses to redeem prior to December 31, 2026, it will be considered an inclusion event under QOZ regulations that will result in the investor being required to recognize the capital gain for tax purposes upon the redemption.