TOP CORPORATE AT TORNEYS
JOHN TISHLER
SHEPPARD MULLIN
John Tishler is a partner at the
global law firm Sheppard Mullin,
where he leads the firm’s EB-5
project finance team. Tishler’s
practice includes corporate
governance, capital markets, corporate finance, business
transactions, mergers and acquisitions and technology.
Tishler’s clients include EB-5 fund managers, developers,
regional centers and other EB-5 intermediaries. His projects
includes nationally recognized hotels, mixed-use and residential
developments. Tishler is a frequent writer and speaker on
corporate governance and EB-5, and the co-editor and co-
author of “The EB-5 Handbook: A Guide for Investors and
Developers.” He is a graduate of Cornell University and Yale Law
School.
WHAT TRENDS ARE YOU SEEING IN
THE EB-5 INDUSTRY?
The extended time horizon for existing EB-5 funds is requiring a
multidisciplinary approach to governance and dispute resolution.
Market norms for the new investment threshold are not yet
established. We are seeing experimentation with higher rates of
investor return and portfolio investments to diversify economic
risk. We are also exploring new marketing plans that could allow
companies to “test the waters” of EB-5 interest before incurring all
the costs of the full suite of investment documents. The EB-5 visa
remains an excellent product for investors worldwide. As long as
the product is good, markets will adapt.
HOW ARE YOU HANDLING
THE ISSUE OF REDEPLOYMENT?
Redeployment is a major event that requires navigation of
important legal and governance issues, including securities
laws, partnership law, fiduciary duties, project finance, tax and
immigration matters. A successful redeployment requires
balancing the interests of investors, intermediaries and
developers in the face of regulatory uncertainty. Investors
often object to redeployment plans and EB-5 funds are facing
threats of lawsuits as they endeavor to redeploy within a
reasonable time. While there is innovation occurring in the
marketplace, it remains challenging to find redeployment
investments that meet the needs of investors, intermediaries
and users of capital.
OSVALDO F. TORRES
TORRES LAW, P.A.
Osvaldo F. Torres graduated
from the University of
Pennsylvania Law School
in 1987. During his 33 -year
career, Torres has prepared
offering documents for a
variety of projects. For the past nine years, Torres has
been immersed in the EB-5 space. He regularly represents
regional centers, developers and projects with their
structuring and offering matters, including hotel, multi-
family, senior living, franchising and other projects. Torres
frequently speaks at EB-5 conferences on securities issues.
He is a member of the EB-5 SEC Roundtable, serves on
IIUSA’s Leadership, Public Policy and Editorial Committees,
and is rated AV Preeminent by Martindale-Hubbell.
WHAT TRENDS ARE YOU SEEING IN
THE EB-5 INDUSTRY?
With visa backlog impacting mainland Chinese, Vietnamese
and Indian investors and continued regulatory uncertainty,
the pipeline for new EB-5 business is diminishing. The visa
backlog also contributes to more of our regional center
clients having to deal with investor withdrawals. Issuers
are facing increasing pressure from investors to release
them from the projects and return investor funds. In many
cases, it is prudent to allow for voluntary investor
withdrawals, even if they may not have a contractual right
to demand withdrawal. Of course, this may strain already
challenged projects, but it is usually best to be rid of
disgruntled investors.
HOW ARE YOU HANDLING
THE ISSUE OF REDEPLOYMENT?
Redeployment remains a difficult issue that is riddled with
contentions. It is a complex issue. Poor USCIS guidance is
not helpful. The competing interests of projects and
investors further complicate matters. We are currently
dealing with several redeployments. They are each troubled
by various issues, including whether the NCE has sufficient
authority to redeploy. The valuation and the fairness of the
redeployment deal are recurring issues. Clearly, projects
must be well-counselled to navigate the alternatives and
potential outcomes. Corporate clients should understand
the business judgement rule and conform their behavior
accordingly to benefit from the protections of the rule.
EB5INVESTORS.COM
65