EB-5 Redeployment has become a critical fiduciary responsibility for NCEs, which requires careful analysis and strategic planning.
In the majority of EB-5 transactions, NCEs act as the general partner, and EB-5 investors are limited partners. As a result, the general partner has certain legal duties and fiduciary responsibilities to the limited partners, which NCEs must be mindful of, or risk investor lawsuits and legal liability.
Capital United’s redeployment solution helps NCEs navigate the redeployment process, resulting in a reduction of legal liability. Working in conjunction with the Bridgeway Municipal Reinvestment Fund, we provide a low risk and liquid redeployment investment option through municipal bonds. These municipal bonds are structured to be consistent with USCIS redeployment guidelines and provide NCE’s with a liquid asset that allows for quarterly redemptions with 30 days prior notice. Our redeployment solution also provides:
Liquidity to EB-5 investors that have satisfied their conditional residency requirements
A transition period to source new redeployment development options, while keeping EB-5 investors “at risk” and earning a return
The ability to take advantage of business cycles
By providing quarterly liquidity, NCEs are able to meet their fiduciary interest of EB-5 investors, and reduce the threat of litigation that can be associated with a longer-term redeployment option, while also taking into account the potential for backlog relief and shorter redeployment timeframes.