NES Financial

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NES Financial is a privately held company that provides centralized financial administration services for banks, law firms, government agencies, and Fortune 500 companies. The company focuses its services on 1031 exchanges, EB-5 visa escrows, and next generation sub-accounting.

NES Financial is based in San Jose, California and maintains regional offices in Chicago and Boston.

In 2011 and again in 2012, Inc. Magazine’s 500|5000 recognized NES Financial as one of the fastest-growing private companies in America with its three-year growth hitting 179%.[1]


NES Financial was founded in 2005 in the fertile entrepreneurial grounds of Silicon Valley. The small company, originally named Nationwide Exchange Services Corp., had a clear vision to set a new industry standard for how Qualified Intermediaries (QI) facilitated IRC 1031 exchanges.

NES Financial developed a proprietary platform, eSTAC, which allows clients to view and administer all the activities from their accounts, in real-time, at any time and from anywhere.

Realizing its broader potential as a financial administrator, NES Financial broadened its core business into two other financial industries - trust and escrows. The company quickly expanded into these markets, and by 2010, the company had outgrown its original vision, prompting a rebranding to its current name, NES Financial.

Today, NES Financial is a third-party administrator of complex escrow and trust administration and 1031 tax-deferred exchanges. Each year the company voluntarily undergoes an audit of its administrative processes for SSAE 16 Type II certification, the same certification needed to obtain a federal bank charter and comply with Sarbanes-Oxley Section 404 requirements.[2] In 2012, it serviced more than $85 billion in transactions.[3]


  • Michael Halloran, Founder, President, and CEO
  • Dan Yoder, Chief Operating Officer and Director
  • Kelly Alton, Senior Vice President and General Counsel
  • Reid Thomas, Executive Vice President, Worldwide Sales and Marketing


In 2005, NES Financial acquired and Nationwide 1031.

In October 2006, NES Financial acquired Cole Taylor Tax Deferred Exchange, a division of Cole Taylor Bank.[4]

In November 2008, JP Morgan Property Exchange (JPEX) from JP Morgan Chase.[5]


NES Financial’s transaction administration solutions are built upon its proprietary eSTAC technology. This cloud-based platform was designed to administer and track the entire life cycle of an account and its transactions.

eSTAC sets the controls for proper documentation and management of account information, to automate routine processes, and to secure clients’ funds. The platform combines back-end and front-end architecture, a design that seamlessly integrated into existing systems. Flexible and scalable, it can be deployed quickly with no downtime.


1031 exchanges[edit]

NES Financial helps businesses that need to sell or invest in assets and want to make the most of IRS tax breaks. The company’s Qualified Intermediary (QI) status, in-house expertise, and automated solutions help companies administrate 1031 exchange types, including forward, reverse, and LKE programs.


NES Financial offers banking solutions that simply financial institutions’ administration transactions. These transactions can include security deposits, pre-need trusts, 1031 exchanges, EB-5 Visa escrows, and other complex escrows.

Trust and Escrow Administration[edit]

The company’s trust administration services provide comprehensive, customizable and fully compliant administration of client trust funds. These funds can be held in multiparty trust accounts such as Interest on Lawyer Trust Accounts (IOLTAs or IOLAs), segregated Client Trust Accounts (CTAs), and pre-need funeral trust accounts.


NES Financial solutions are suited for a broad range of industries, including:

Aviation: NES Financial facilitates 1031 exchanges when companies need to sell and replace aircraft. This allows companies to defer taxes and reduce cash outlay on new aircraft.

Banking: NES Financial provides online trust and escrow programs that help financial institutions simplify and administer the complex processes associated with restricted or controlled funds, including tenant security deposits, 1031 like-kind exchanges, and EB-5 Visa escrows. Energy: The IRS allows energy companies to defer taxes with 1031 exchanges for oil and gas royalties, leases, mineral estates, working interests, and revenue-producing capital equipment. NES Financial facilitates these complex transactions for upstream, midstream, and downstream energy sectors.

Leasing: Leasing companies that exchange old equipment for new equipment, such as fleets of vehicles, aircraft, or industrial equipment, can defer taxes on capital gains and depreciation recapture with the company’s 1031 exchange program.

Real estate: NES Financial provides sectors within the real estate industry the programs to ensure security of funds, regulatory compliance, and transparency. The company’s technology-enabled services offers homebuilders advanced sub-accounting and reporting capabilities for homebuyer escrows and tenant security escrows.

Pre-need trusts: NES Financial’s administration solution can be tailored to suit many trust programs and clients. It simplifies and streamlines the secure administration of trust accounts and offers clients 24/7 account monitoring and automated reporting-on-demand to ensure that funds are never combined with other accounts.

EB-5 Visa escrows: NES Financial simplifies escrow administration by helping Regional Centers efficiently manage their bank and escrow needs, centralize document storage, provide virtual file sharing, and improve security, transparency, and compliance. On January 8, 2013, NES Financial announced the addition of two new EB-5 escrow products for construction and capital returns.[6]


NES Financial creates alliances with financial institutions, law firms, business leaders, and industry associations commonly involved in the administration of trusts, escrows, and 1031 exchanges

Custodial Banking Partners[edit]

Financial Reform Efforts[edit]

Following the financial crisis of 2007-2008, NES Financial focused its efforts in Washington D.C. Led by CEO Michael Halloran, the company lobbied tirelessly to improved 1031 industry regulations. Despite Halloran’s nearly two years worth of efforts, the Dodd–Frank Wall Street Reform and Consumer Protection Act of 2010 did not include additional 1031 regulations.[7]


External links[edit]