for investment immigration, what kinds of projects do you generally look for— usually within EB-5, or more generally?
Anna: I focus a lot on a triangle structure. That means there is a project side, and then there is a fund manager side, which is like a regional center( the private equity fund manager), and also the investors. I find this structure is more stable and reliable. This is the first thing I look at. I try to avoid selecting projects where the regional center is highly related to the project. I look at the regional centers or the fund manager’ s previous experience, their track record, and also their functions on that particular project, and also their business assets.
EB5 Investors Magazine: Does your company offer both the regional center option and the direct investment option?
Anna: We just focus on regional centers. I’ ve found this is more stable. If people are looking at the principal phase and the green card, and they don’ t have such business experience, or they don’ t have knowledge of that, the chances of failure are huge.
EB5 Investors Magazine: Where in the capital stack do you feel most comfortable?
Anna: I would prefer the form of a loan. I’ ve found some projects put the investors as preferred shareholders— they have all the high risk of being a shareholder, but their return does not match the risk. With the loan as collateral, they have more security for the funds. Their aim is very clear: their primary concern is that the principal is safe, and also the green card. I would always advise clients to focus on that. To balance a project— for the green card, the safe principal, as well as the return— sometimes I suggest for them to separate the immigration program from the other PE investment projects, because different PE’ s have different aims, and to make it more effective to reach the goal in the end it’ s a better idea to keep them separate.
EB5 Investors Magazine: Is there a specific percentage range that your company looks for when they put their EB-5 investors in a project? The average now is 30 percent; do you have a preference when you’ re looking at a project?
Anna: I think that 25 percent is good and 30 percent is the maximum. I don’ t feel comfortable if it’ s more
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