EB-5 financing can be a powerful tool for real estate development by providing low-cost, flexible, and covenant-light capital. Projects also find that the additional leverage of EB-5 capital can be incredibly accretive to the sponsor IRR.
However, there are hidden costs associated with EB-5 financing. Because EB-5 is a private placement of securities to foreign, retail investors, the uncertainties in both funding and timing can be frustrating for project sponsors. Furthermore, non-compliant, or fraudulent behavior by bad actors has cast a shadow over the EB-5 industry.
At New City Capital, it is our mission to create compliant offerings with clear paths to success. We empower our developer partners and their EB-5 investors to feel confident in their decisions. We believe in transparency and efficacy, and we cut through the obfuscation.
We believe in providing real value through our services, which is exemplified through our staged engagement process. Our initial engagement is to ascertain the viability of the EB-5 offering. Not all projects are well-suited for EB-5 capital, and we believe in making sure that our developer partners are set up for success. We do not like to see developers paying exorbitant fees only to find their projects falling stagnant in the market, jeopardizing their projects with unnecessary funding risk. Upon engagement, our team works intimately with our developer partners to perform in-depth due diligence and delineate the marketing strategy. We provide live market feedback, so that offerings can be structured, priced, and marketed for success. Our project partners can then move forward confidently, with a fully compliant offering.
Our placement agent service is a deeper engagement. Our philosophy is to cut through the noise of the market, and ensure that syndicating parties and investors receive full and fair disclosure. We aim to protect the integrity of the project and make sure that suitability standards are met. Our team is sensitive to market best-practices and well-versed in cultural nuances. We have put internal processes in place so that our developer partners do not need to second guess if their message is being altered, or if material information is being omitted. The investors who subscribe to the offerings are screened and vetted, as issues in case processing can seriously hinder the success of an offering. Our goal is to be efficient, effective and expedient, with clarity and transparency throughout the entire process.
EB-5 is a fantastic source of capital that can benefit countless projects. Let us put it to work for you.
One of the main pain-points of EB-5 financing is its lack of certainty. Project sponsors want to be able to count on capital commitments, and know that they can proceed with their work unhindered. To this end, New City Capital, through a network of funding partners, has created a bridge facility program that allows project sponsors to enjoy the certainty of capital and the benefits of EB-5 financing.
Through the bridge facility program, we provide standby commitments, bridge loans, and contingency capital to protect a project’s timeline. Our team understands the EB-5 process and have a live pulse on the market. This allows us to structure the product realistically and feasibly, and empowers our developer partners to focus on what they do best: building high quality projects.
We provide equity financing through a network of funding partners for projects we believe in. In particular, we like projects with sound fundamentals that can create sustaining value over a long period of time.
We strive to make sure that every project we take on is fully compliant with applicable security laws. We maintain the integrity of the investment process by providing material disclosures, ascertaining suitability standards, verifying source of funds, tracking path of funds, and retaining relevant records. We work to protect our partners and their projects through a thorough, detail-oriented approach.