Selecting an EB-5 Project
As much selecting a reputed and vintaged RC is important so is selecting a good EB-5 Project. The team at JustEB5 does a comparative study of shortlisted EB-5 projects sponsored by highly reputed Regional Centres. We provide a concise analysis of the project after a thorough evaluation of the Private Placement Memorandums and subsequent interactions with the Regional Centres. Our analysis includes industry and market participants, borrower and sponsor/guarantor profile, borrowing structure with key emphasis on Balance Sheet, Credit Ratings, EBIDTA, cash flow and risk mitigation for EB-5 investors through collateral strength and liquidity to enable the investor to select the best projects with the highest probability of timely repayment on maturity.
Frequently Asked Questions
Why is it important to select a good EB-5 Project?
Selecting a good EB-5 project should be the most crucial criterion while making an EB-5 investment. As the funds invested go into a particular project, it is essential to know the mechanisms applied that enable and ensure maximum chances of its success.
How do I select a good EB-5 Project?
Selecting a good EB-5 Project requires an understanding of the following:
- What is the level of equity that has been contributed by the promoters,
- What is the rank of EB-5 investors in the capital stack and
- How much percentage of Senior Loan is sitting above the EB-5 investors vis-a-vis equity contribution by the promoter below them.
As most of the EB-5 projects offer debt participation in the capital stack, EB-5 investment has to be understood from the perspective of project financing as it is a loan that EB-5 investors give to the project.
How does JustEB5 help me choose a good EB-5 Project?
The team at JustEB5 has combined and relevant experience of almost 50 years in the EB-5 and banking industry. The corporate and investment banking experience required to analyze the health of an EB-5 project is best done by the team with project financing expertise.
The team does a thorough analysis of project documents that include:
- Industry and market participants,
- Borrower and sponsor/guarantor profile,
- Borrowing structure with crucial emphasis on Balance Sheet,
- Credit Ratings,
- EBIDTA,
- Cash flow, and
- Risk mitigation for EB-5 investors through collateral strength and liquidity
To enable the investor to select the best projects with the highest probability of timely repayment on maturity.
