QOZ and QSBS are written into law. Together, they eliminate federal capital gains tax on appreciation. Most PE firms don't use both. We're built entirely on them.
Whether you're deploying capital gains, managing client relationships, or exploring strategic partnerships, here's the right path for you.
Understand the structures. Learn the mechanics. Explore how QOZ, QSBS, and AI-driven operations compound to create sustainable after-tax returns.
Qualified Opportunity Zones are entering a critical institutional phase. QOZ 2.0 establishes a permanent framework for managing capital gains through 2047 with rolling deferrals, Relocation Safe Harbors, and enhanced step-ups.
How autonomous AI agents, proprietary models, and operational automation compress 12-18 month traditional PE value creation timelines to 90 days, accelerating EBITDA growth and exit multiples.
QOZ and QSBS are legislated by Congress to incentivize specific capital deployment. Combined, they create permanent tax elimination that most PE firms never tap into. Here's the plain-language breakdown.
You have a capital gain from any source. Instead of paying tax now, you invest it in a QOZ fund. The tax defers indefinitely under OBBBA rolling deferrals through 2047.
After 5 years, your original gain basis increases by 10%. After 7 years, an additional 5% step-up applies. The deferral compounds in your favor.
After a 10-year hold, all appreciation on the OZ investment is permanently tax-free. Zero federal capital gains. This is written into law.
Investments in qualifying small businesses held for 5 or more years qualify for up to 100% gains exclusion from federal tax.
Up to $15M or 10x basis excluded per issuer. Substantial capacity for meaningful gain positions without hitting exclusion limits.
Most states conform to federal QSBS treatment, providing additional exclusions beyond the federal protection.
Traditional PE: Earn $10M gain, pay ~$2.5M in federal capital gains tax, keep $7.5M. REV Global via QOZ + QSBS: Earn $10M, pay $0 in federal tax, keep $10M. That $2.5M gap isn't luck. The tax code was written to eliminate it.
Here's how the two models stack up across the dimensions that determine actual returns to investors.
| Traditional Private Equity | REV Global Capital | |
|---|---|---|
| Tax Treatment | 20–25% federal capital gains on every exit | $0 on appreciation after 10-year QOZ hold + QSBS Section 1202 |
| After-Tax Returns | ~17% IRR after capital gains taxes erode gains | 22%+ after-tax IRR — structural outperformance via tax elimination |
| Post-Close Operations | Manual playbooks and consultants. 12–18 months to value creation. | AI agents deployed Day 1. 90-day operational transformation. |
| Underlying Value Creation | Financial engineering and cost cutting | AI-driven operational transformation + tax-free compounding |
| Exit Strategy | 3–5 year exits. Fully taxable gains on every exit. | 10-year strategic holds with permanent tax-free appreciation |
We invest in essential-service businesses with predictable cash flows, not speculative tech plays.
Precision machining, fabrication, and contract manufacturing running on paper and manual scheduling. AI-driven production planning and automated quoting unlock margin and scale.
Trucking, towing, and fleet operations with essential service models. AI route optimization, automated dispatch, and predictive maintenance convert manual operations into scalable platforms.
Home health, outpatient clinics, and specialty care with recurring revenue. AI automates scheduling, billing, and patient intake, reducing overhead while improving capacity.
OZ-designated real estate and multi-family qualifying for permanent tax-free appreciation. AI-driven property management and automated screening maximize NOI.
Combined 40+ years in private equity. Successful exits across multiple sectors. Proven track records in value creation and capital deployment across the lower middle market.
Former operators from Fortune 100 organizations including Disney and Amazon, alongside SMB leadership veterans. We build and deploy the AI agents and automation that drive our 90-day value creation model.
Leading Opportunity Zone and QSBS advisors from top-tier law and accounting firms. Optimal structuring and full compliance through evolving regulations across the full 10-year hold.
Seasoned professionals with specialized knowledge in our target sectors. Strategic insights applied at every stage: acquisition evaluation, post-close integration, and exit preparation.
Whether you're deploying capital gains, evaluating deal flow, or looking to co-invest alongside our team, the next step is a conversation.
REV Global Capital is for informational purposes only and does not constitute an offer or solicitation to buy or sell securities. Investment opportunities are available only to accredited investors as defined under SEC Regulation D. Opportunity Zone and QSBS tax benefits are subject to holding period requirements, IRS qualification rules, and individual tax circumstances. Past performance is not indicative of future results. Consult your own legal, tax, and financial advisors before making any investment decision. REV Global Inc. is not a registered investment adviser.