NES Financial

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NES Financial is a privately held company that provides solutions to simplify complex financial transactions. The company focuses its services on 1031 exchanges, EB-5, and escrow, and fund administration. Clients include major Fortune 500 companies.

NES Financial is based in San Jose, California and maintains a regional office in 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 fund administration transactions such as EB-5 and 1031 exchanges. Each year the company voluntarily undergoes a compliance examination of its administrative processes for SSAE 16 SOC 1 Type II certification, the same certification needed to obtain a federal bank charter and comply with Sarbanes-Oxley Section 404 requirements.[2] In 2014, it serviced more than $85 billion in transactions.


  • Michael Halloran, Founder, Chairman, and Chief Executive Officer
  • Dan Yoder, Chief Operating Officer and President
  • Reid Thomas, Executive Vice President
  • Kelly Alton, Senior Vice President and General Counsel


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.[3]

In November 2008, JP Morgan Property Exchange (JPEX) from JP Morgan Chase.[4]


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 secure clients’ funds. The platform combines back-end and front-end architecture, a design that seamlessly integrates into existing systems. Flexible and scalable, it can be deployed quickly with no downtime.


Escrow and Fund Administration[edit]

The company’s escrow and fund administration services provide comprehensive, customizable and fully compliant administration of client funds. As with traditional fund administrators, NES Financial provides accounting for the fund and its participants: financial reports, investor statements, tax reports, and capital allocation reports.


NES Financial simplifies escrow administration by helping Regional Centers and developers 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.[5]

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 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.

Commercial Real estate: NES Financial provides sectors within the real estate industry the programs to ensure security of funds, regulatory compliance, and transparency of processes. The company provides other companies in the commercial real estate, legal, and M&A markets with the expertise, technology, and administrative resources to quickly make the complex easy.

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.


NES Financial creates alliances with financial institutions, law firms, business leaders, and industry associations commonly involved in the administration of 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.[6]


In 2013, NES Financial was chosen as the 2013 EB-5 Service Provider of the Year by Artisan Business Group.[7] In 2014, NES Financial received the OutSystems Innovation Award for the company's proprietary eSTAC® technology.[8]


External links[edit]