The RGC Opportunity Fund
The purpose of RGC Opportunity Fund, LP “The Fund” is to create a revolving lending facility that can take advantage of unique and alternative investment opportunities within the EB-5 Program. Our mission is to deliver solid returns to our lending partners by mitigating risk through:
(a) access to top real estate driven investment opportunities
(b) proven strategic partners
(c) strong collateral positioning
EB-5, though having been around since early 1990, has grown exponentially over the past 5 years as an alternative financing vehicle for U.S. projects. The demand from wealthy foreign investors to participate in the program far exceed the available number of visas allocated by the USCIS for the program. As the result of EB-5 investments, billions of dollars have been made available to qualifying projects in the United States resulting in the creation of over 100,000 new permanent U.S. jobs. The program has bi-partisan support in Congress and continues to gain favor with traditional lenders as a viable source of capital leading to more projects getting the funding they need.
Most qualifying EB-5 Investments require that the investor funds be held in escrow until such time that the investors are approved for their temporary resident visa by the United States Citizens and Immigration Service.* This process can take 12-14 months. Most developers cannot wait that long to gain access to the funds since they must be “shovel ready” in order to qualify for EB-5 investments.
The RGC Fund has created a bridge loan facility which will advance funds to qualifying projects based on the amount of funds held in escrow respective to a given project. The RGC Fund ensures that the bridge funds are fully secured via an instrument referred to as a Collateral Assignment of Undertakings “CAU” and a junior lien on all project assets. The CAU obligates the lender of the EB-5 funds and the borrower (project developer) to utilizing 100% of EB-5 funds as they come out of escrow to be used for retiring the bridge facility. This structure has met all USCIS approvals and the CAU provides virtually a 100% collateralized security interest to ensure the repayment of the bridge funds.