mitigation available in reinvestment opportunities (such as a
collateralization of a loan), the more likely it is that investors will
be pleased with the ultimate redeployment options.
The fourth is due diligence. The importance of due diligence
cannot be over emphasized as a measure to offset the NCEs
managers’ or general partners’ fiduciary obligations. If the NCEs
are sourcing redeployment deals on their own, independent, third-
party due diligence should be carried out on the investment. If
the NCE is working with a fund manager, due diligence should be
performed on the fund manager by an independent third party.
A registered investment advisor might also be able to help with
such diligence.
DEFINING SUCCESS
Redeployment has presented a headache for NCEs organized
prior to 2014, especially given the complexities associated with
the legal, administrative and fiduciary concerns. If NCEs retain
the appropriate team of consultants, they should be in a position
to meet the redeployment requirements (immigration, fiduciary
and securities) while allowing for an acceptable risk of mitigation.
Such complexities can be turned into an opportunity to generate
additional revenue for the stakeholders beyond what was
originally anticipated.
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EB5 INVESTORS M AGAZINE
PHIL COHEN
Phil Cohen is the president of Strategic Element
Inc., a company that focuses on developing EB-5
business plans, economic impact reports and
feasibility studies. Active in the EB-5 industry since
2010, Strategic Element has participated in projects
that have raised over $3 billion in EB-5 capital. Cohen is also the lead author
of “The EB-5 Definitive Guide” and regularly speaks at industry events.
ROHIT KAPURIA
Rohit Kapuria, an attorney at Saul Ewing Arnstein
& Lehr LLP, regularly represents EB-5 lenders,
borrowers, banks, regional centers, real estate
developers and migration brokers. Kapuria’s legal
practice is a dual hybrid of corporate securities and
EB-5 immigration. He has worked on over 350 EB-5 transactions, with a
combined capital development cost in excess of $6 billion. Kapuria is fluent
in Hindi, Urdu, Punjabi and Hausa and represents many EB-5 Indian clients.
He has worked as an economist and fund manager where he analyzed
predictive fund models for an NGO.