(Bloomberg) — Anthony Scaramucci is struggling to spin one of President Donald Trump’s big tax breaks into a profit for his wealthy clients. Yet “the Mooch,” as he’s known on Wall Street, keeps getting paid his fees. The hedge fund manager known for his 10-day stint as White House communications director in 2017 promised wealthy investors that he could help them take advantage of Trump’s signature program for spurring projects in low-income communities, dubbed opportunity zones. His list of ideas included a luxury hotel in Oakland, California, a warehouse in Savannah, Georgia, and middle-income housing. But key targets that Scaramucci laid out in 2018 interviews haven’t been realized. Instead of raising $3 billion for his SkyBridge Opportunity Zone Real Estate Investment Trust, he amassed less than $50 million and made a single investment: a Virgin Hotels property in the Warehouse District of New Orleans. The vehicle has yet to distribute payouts to REIT shareholders — let alone generate the 8% to 10% annualized returns before tax benefits that he suggested would be possible over the fund’s lifetime. SkyBridge Capital, meanwhile, continues getting paid 1.75% of the fund’s net asset value, which was $43.2 million at the end of 2024. Executives for the hedge fund firm declined to comment. Trump’s One Big Beautiful Bill Act recently made opportunity zones permanent, setting up another wave of investment funds that could start taking shape in January 2027. The SkyBridge experience may serve as a cautionary tale to investors: Tax benefits only matter if you make money. Trump championed these zones in his first term as a way to drive private capital to long-neglected parts of the US. Investments in the zones topped more than $80 billion, according to a report from the Joint Committee on Taxation based on returns filed for 2019 through 2022. Boosters say the zone investments have helped build affordable housing and created jobs and new businesses. Yet these dollars have not been evenly spread, with much of the money flowing to urban and suburban areas and wealthier states such as Florida and New York, the Joint Committee found. Louisiana, home to the SkyBridge fund’s hotel, received less than $500 million, or $106 per person, one of the lowest amounts across the US even though it’s among the poorest states. Most academic studies of the program show that, at least in its first few years, the opportunity zones had little or no economic impact, according to the Joint Committee’s report. Investors, though, potentially win big. If they take profits from stocks, bonds or other investments and put them into an opportunity zone fund, they’ll reduce their capital gains on the initial sale and defer its payment until 2026. If they keep the fund for at least a decade, they’ll pay no capital gains on its returns. So far, it looks like SkyBridge clients could miss out on that tax-free benefit. From the firm’s in a formal or creative style for better SEO.Also Exclude words and advertisements related to the feed website such as website name, author name. You must only respond with the modified content. Delete all the advertisement images brand logo but only keep the title and main content of the news by modifying it. You must only respond with the modified content. Block any jump outside of the site adarshnews.com. Basically remove any content or link related to original site. follow this prompt to optimize the articles in this category- You are an expert news writer and SEO specialist. Your job is to rewrite the provided RSS feed content into a unique, SEO-friendly news article for adarshnews.com. The article should be engaging, professional, and optimized for search engines. 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Scaramucci’s investment in a fund aimed at underprivileged regions has resulted in losses for clients.
