60% of Chinese Investors Would Walk Away if Faced with Redeployment: New Poll
By Phil Cohen
In a very telling poll commissioned by Seattle Family Regional Center via EB-5 Sir (a China-based EB-5 social media platform), of the 681 investors surveyed, a surprising 60% indicated that they would prefer to withdraw their investments if possible, if faced with the need to redeploy their capital to another investment. A further 16.74% indicated that they were as yet undecided on what they would do. While a relatively large number of respondents to the poll (32%) indicated that they do not fully understand EB-5 redeployment policy, the numbers are still quite high.
Overall, there are a few implications for regional centers, if these figures are to be considered representative of the broader market:
Regional centers should educate their investors on redeployment sooner rather than later.Helping investors to understand what is coming their way will ease the path to a redeployment process that is less likely to be challenged by investors. Walk-away investors, who would be willing to forfeit their entire EB-5 immigration status, may seem at first like a welcome headache relief for many regional centers who would rather not deal with redeployment, but if investors start walking away from any given regional center, then their long-term viability may come into question in the marketplace. Walk-away investors can affect redeployment investment choices and terms.If a significant number of investors walk away from an EB-5 deal, the New Commercial Enterprise (NCE) in charge of redeploying the capital, may face a less appealing array of investment choices that (and other terms such as fees) than what they face if they were working with a larger sum of money. According to the same poll, age-outs of investors’ children are an important influencing point; the addition of redeployment during an investor’s ‘sustainment period’ means that many investors will now unexpectedly see their children age out of the process before it is completed.In many cases they will see no point in moving ahead if their children can’t get their immigration status.The EB-5 redeployment issue is one that includes many moving parts; regional centers and NCEs will be able to facilitate productive conversations with their investors if they understand their investment choices in advance, including the associated risks and returns.It is unlikely for most cases that an entire investor contingent will be happy with choices available to them, but starting the conversation earlier can only help in ensuring as many happy investors as possible, which can ultimately help to preserve the reputations of regional centers in the process.
See the survey results here: https://www.linkedin.com/feed/update/urn:li:activity:6501670639991128064
Phil Cohen is a Vice President at Altytude Advisors, and is an Investment Advisor Representative, in addition to serving as President of Strategic Element Inc. Phil has been involved in EB-5 as a service provider since 2010, and has recently expanded his EB-5 industry involvement by working with the team at Glide Capital (Glide) to launch the Altytude Advisors concept.
Altytude Advisors was developed to leverage Glide Capital’s (Glide) pre-existing platform of pre-vetted private debt funds, which has grown to $300 million in assets under management from high net worth and institutional investors.
Contact Phil Cohen (ext. 18) or Aaron Armstrong (ext. 20) to learn more about how the Altytude offering can provide an alternative approach to meet EB-5 redeployment needs.
1-888-895-9411
Disclaimer
This is not an offer to buy or sell securities. An offering will only be made by means of a final offering memorandum and only where permitted by law. This presentation is not intended for public use or distribution.
No assurance can be given that the investment objectives will be achieved. Past results are not necessarily indicative of future performance. Altytude Advisors performance may be volatile and you may lose some or all of your original investment. Performance figures and exposures are estimated and may be inaccurate or incomplete.
This presentation is private and confidential, and not intended for public use or distribution. Readers are cautioned not to place undue reliance on forward-looking statements and statements relating to earnings on investments placed with the funds projected in this presentation. Actual results may differ materially from those indicated by forward-looking statements regarding projected returns on the funds’ investments, including by reason of risks and uncertainties impacting the economic environment impacting the funds’ investments, including: increased competition in the market sector; the wherewithal of the funds to fund the expansion of their projected investment levels; the ability of the funds to attract and retain qualified personnel and maintain stable investor relationships, general economic conditions; and such other risks as may arise in the external environment in which the funds operate.
Altytude Advisors does not necessarily have access to information from third-party managers to ensure the accuracy of the information presented, and any information received from third-party managers may be inaccurate or incomplete. Certain information presented is of a high-level, summary, condensed and aggregated nature, and is inherently limited, incomplete, and required the application of simplifications, generalizations, and assumptions to produce. Altytude Advisors expressly disclaims any representation or warranty as to the accuracy, completeness, availability, or timeliness of the information presented. The information provided does not necessarily reflect the most up to date or current information available. All sources are deemed to be reliable, but no warranty or guarantee is made as to their accuracy or completeness. Estimates and projections are based on assumptions that may not come to pass. Estimates, projections, and proposed portfolios do not represent the performance achieved by Altytude Advisors or any of its clients.
Information presented does not involve the rendering of personalized investment advice and should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgement of the advisor as of the date of the presentation and are subject to change.
Asset allocation and diversification do not assure or guarantee better performance and cannot eliminate the risk of loss of part or all of invested assets.
No current or prospective client should assume that the future performance of any specific investment or strategy will be profitable or equal to past performance levels. Changes in investment strategies, contributions or withdrawals, and economic conditions may materially alter the performance of your portfolio. There are no assurances that a portfolio will match or outperform any particular benchmark. Past performance does not guarantee future investment success.
Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client’s portfolio. The tax, legal, and estate planning information provided is for informational purposes only, and should not be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.