With the specific mission of meeting the guidelines and requirements of the EB-5 Program, the Fund’s Manager sees the following as key factors in its investment decisions.
Job Creation – The Fund will focus on investments that not only meet, but exceed the EB-5 Program’s job creation requirement in order to provide additional security to its investors. The excess jobs provide a cushion in the event that a specific project does not meet its estimated job creation. In addition, excess jobs created by a specific project can be stored in a unique “Job Bank” that can be allocated to an investor in need.
Location (TEAs) – AAOF III will only invest in Targeted Employment Areas, as required by the EB-5 Program. If an investment opportunity does not fall within a TEA of an approved geography for the Regional Center, the Fund will not consider it for investment.
Proven Developers and Strong Operators – AAOF III’s Manager firmly believes that the most important element of any real estate development or small business is the quality of its management team. As such, the Fund will focus on investing in projects with strong development and management teams. The Fund’s Manager’s experience in direct operations and board participation will provide understanding in the evaluation of the strength of the management teams of its prospective investments.
Strong Competitive Advantages – The Fund’s investment focus also places a very strong emphasis on competitive edge. Prospective projects must possess aspects that differentiate them from their competition, such as unique business models, strategies that mitigate risks, superior locations, more competitive pricing strategies and lucrative profit margins.
Use of Government Incentive / Tax Credit Programs – The Fund will seek out investment opportunities in which it can leverage government sponsored incentive programs and / or tax credit programs. These types of incentives provide additional capital to a project and therefore help to reduce investment risk.