EB5 Investors Magazine (English Edition) Volume 5, Issue 1 - Page 62

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. 61 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