How can an EB-5 regional center provide different offers to EB-5 investors in the same NCE? - EB5Investors.com

How can an EB-5 regional center provide different offers to EB-5 investors in the same NCE?

Is it true that EB-5 regional centers have to offer the same percentage of return to each member in a new commercial enterprise? Can a general partner offer a management fee waiver to some members to provide additional interest?

Answers

Bernard P Wolfsdorf

Bernard P Wolfsdorf

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Answered on

Generally speaking, the offer must be as stated in the private placement memorandum so it is a securities compliance question as the private placement memorandum must be factual. Management fees may be over and above the investment threshold so they may be discretionary.

A Olusanjo Omoniyi

A Olusanjo Omoniyi

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Answered on

Yes, it can happen. The possibility of ending with different management fees depends on the negotiations of the parties.

Salvatore Picataggio

Salvatore Picataggio

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Answered on

Each investor files their own application, so something like a management fee or administration fee, which is separate from the required investment, can vary from investor to investor.

Lynne Feldman

Lynne Feldman

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Answered on

I know of no rule against this.

Ed Beshara

Ed Beshara

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Answered on

All investors in the NCE should receive the same interest and rate of return.

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