AAOF plans to make 8 to 12 investments in small to medium-sized businesses and real estate projects operating in Targeted Employment Areas within the state of Florida. In addition to equity investments and mezzanine loans, the Fund will seek to make senior secured loans on similar terms, in order to diversify its investment class and gain additional collateral to mitigate risk. The Fund anticipates that its investments will range between $1 million and $5 million, with yields of 12% to 14%, and may receive nominal-cost equity participations with the debt related instruments. The Fund will seek companies with revenues in the range of $2 million to $100 million with stable, growing cash flows. It is intended that investments will be used to support growth initiatives.
AAOF’s investment focus will be on real estate projects and businesses within the manufacturing, distribution, health care and other niche-markets with the following characteristics:
- Job creation
- Strong management teams
- Cash flow oriented businesses
- Executable business plans
- Opportunities for sustainable growth
- Strong competitive advantages
Many of AAOF's investments will take the form of a co-investment with our sister fund, Community Reinvestment Partners, whose mission is to acquire or develop grocery-anchored shopping centers in the southeastern U.S. These co-investments help ensure that we will always have a suitable investment waiting when someone decides to move forward with their I-526 application. The strong credit nature associated with this recession resistant asset class helps ensure the likelihood of both meeting the job creation requirement of EB-5 as well as preserving investor capital.