Deep Research Capabilities

Each project has a Private Placement Memorandum which could be of a size anywhere between 150 to 300 pages. It is very important to drill every word of it. This is in addition to several documents, each running into dozens and hundreds of paragraphs, which play a crucial role in conducting due-diligence of any given project. We focus on the following aspects:

• Seniority offered to EB5 investor as against other lenders
• Cash flow analysis to extrapolate earning capacity of the project so as to ensure repayment to EB5 investors from internal accruals
• Job Analysis; for instance, we have never advised any of our investors to invest in a project wherein they are under the last quartile of total strength. This is to avoid getting kicked-out, in adversities, due to FIFO method adopted by USCIS.
• Each disclaimer given in the PPM must be read carefully, as there may be a few projects which are subject to some litigation risk. As an investor, you would never realise such risks unless someone would have audited it for you inch by inch.
• Life-cycle of a project. EB5 investment is all about boarding the train at the right station. There will be Projects where everything seems right, fully funded with construction also in place; however, it may still not be the right choice if other factors are not favouring. There can be no thumb rule to it unfortunately; each project needs to be drilled from operational, financial, and legal perspective.
• Mechanism of funding the project, and understanding if third party loans are tied up. More important would be the flow in which monies are being deployed. For instance, in some projects, bank loans are not tied up even when EB5 funds are. Whereas in a few other cases, bank loans are tied up, however, there is a minimum cap on the amount that needs to be raised failing which the investors are refunded their investment amount. While there is nothing wrong with such projects, the key would be to determine where the project stands as on the date of your investment.