EB5 Private Placement Services
Prevail Capital can act as a Placement Agent for your EB-5 offering. A placement agent provides many services for both the EB-5 issuer and the prospective EB-5 investor.
Prevail’s services for the EB-5 industry can be segregated as below, these services provide a staged approach for clients:
Step 1: Pre-Engagement Viability Analysis
The first stage of our services are to understand the business, financial and immigration viability of the offering from the sponsor’s perspective and from the EB-5 investor’s perspective who seek US residency in combination with a suitably structured investment.
Involving Prevail at the outset of your offering to work in tandem with your economists, business planners, securities and immigration counsel can help your project to be structured for success and to potentially save costs.
Although a sponsor may be able to create a compliant documents package, they may have far less control over the EB-5 investor placement process.
Step 2: Due Diligence
Following the initial viability study, the second stage is an in-depth due diligence analysis on the offering. Performing due diligence in conjunction with EB-5 financing is a very broad assignment, the offering must be examined closely to make sure adequate disclosures are provided and to identify any potential red flags.
Due diligence must be completed from an EB-5 perspective to determine if a project will reasonably meet the USCIS requirements for EB-5 investment.
Information needed for review by Prevail could be expected to include some or all of the below elements:
- Intended Use of Proceeds of the Offering – Reasonable investigations of the use of proceeds detailing those items that comprise the capital stack of the offering.
- Issuer and Management – Reasonable investigations of the issuer and its management concerning the issuer’s history and management’s background and qualifications to conduct the business.
- Issuer and Prospects – Reasonable investigations of the issuer’s business prospects, and the relationship of those prospects to the proposed price of the securities being offered.
- Accuracy of Program Claims – Reasonable investigations into the structure and material statements of the program, including whether the program can meet its stated objectives.
- Issuer’s Assets – Reasonable investigations of the quality of the assets and facilities of the issuer.
Step 3: Placement Agent Service
Prevail Capital helps promote compliance and clarity to the offering and sale of EB-5 private placements on behalf of Issuers and Sponsors.
We evaluate the financial suitability of an investment for the potential investor and help evaluate their eligibility for participation in the EB-5 program. Prevail Capital is responsible to help promote the integrity of the investment process, including providing answers to investor questions, reviewing the transaction process, and maintaining investor records.
Some examples of the services provided are:
- The solicitation, offer and sale of EB-5 securities
- Dissemination of Offering Materials
- Know Your Customer (risk tolerance, time horizon etc)
- Suitability determination for each investor
- Accredited investor check
- Anti-money Laundering Procedures / OFAC (as applicable)
- Politically exposed persons check
Comprehensive analysis is performed and each client/case is individual and unique, please contact us to help with your specific needs.