are often tailored, shorter-term strategies designed
to deliver absolute and relative returns, and with risk
mitigation tactics in the form of professional analysis
and investment selectivity.
The challenge with these investments is again in the
timing. Alternative investment
managers do not always have
deals at the ready. For a single deal,
it is also relatively difficult to find
and vet these operators without
some third party assistance.
Another challenge relates the
permissibility of fixed/absolute
returns. Having any type of return
that may appear guaranteed,
could be violative of the “at risk”
requirement.
Intermediaries can be an important link to investments
that can meet an NCE’s needs in terms of the amount
of capital to be redeployed, risk and reward profiles and
most importantly, investment timelines.
"...The ideal return
may be beyond
the reach of the
safest investment
opportunities
available in today’s
market."
WORKING WITH
INTERMEDIARIES
While redeployment is a relatively new concept, there
has been the emergence of a few EB-5 redeployment
intermediaries. The key value of intermediaries in the
redeployment context is providing a level of oversight
and management wherein such groups can help source,
pre-qualify and aggregate investment opportunities.
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EB5 INVESTORS M AGAZINE
PLAN AHEAD FOR
GREATEST SUCCESS
Ultimately, the key to success
in turning redeployment into an
opportunity is being prepared and
working within the parameters
of compliant securities and
EB-5 policy guidelines. Regional
centers and NCEs should be
in constant contact with their
investors, JCEs and importantly,
with their securities counsels. If
the NCE needs to redeploy capital
outside of its own holdings, it
would be wise to begin discussing alternatives sooner
rather than later.
Some best practices for NCEs to consider include legal
and investment guidance from experienced counsel and
professionals, institutional level due diligence, securitized
investments where possible, reasonable risk and return
investments, strong business teams, reasonable length