EB-5 Investment Immigration to the United States

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1 EB-5 Investment Immigration to the United States EB-5 from start to finish Baker Tilly refers to Baker Tilly Virchow Krause, LLP, an independently owned and managed member of Baker Tilly International MARCH 2017 LOTTE HOTEL, MOSCOW, RUSSIA

2 About Baker Tilly Capital, LLC > Regulated by the U.S. Securities & Exchange Commission (SEC) > Member of FINRA since 2001 Specific approval to offer EB-5 investments since 2014 > Wholly owned by Baker Tilly Virchow Krause, LLP Established in 1931 One of the top 15 largest accounting and advisory firms in the US More than 2,700 professionals Projected FY17 total firm revenue over USD $500 million Major offices in Chicago, Detroit, Minneapolis, Philadelphia, Pittsburgh, New York, Washington D.C. and throughout Wisconsin Largest member worldwide of Baker Tilly International» 8 th largest accounting network in the world» Members in 147 countries worldwide Able to offer international tax advice to EB-5 investors 2

3 What is EB-5? > Enacted in 1990, EB-5 is the investment for immigration program offered by the United States and administered by U.S. Citizenship & Immigration Services (USCIS), a division of the U.S. Department of Homeland Security > Qualified job-creating investments rapidly obtain permanent U.S. residency (a green card ) for the investor, their spouse and unmarried children that are under the age of 21 > The investment amount is currently $1,000,000, unless the project is located within a Targeted Employment Area ( TEA ), then it is reduced to $500,000 > Investor funds must be at risk (no guarantees or reserve funds) and receive credit for generating 10 full-time jobs 3

4 EB-5 benefits > One EB-5 investment provides permanent U.S. residency for the investor, their spouse and children under age 21 and unmarried > Ability to leave/enter the U.S. > Attend U.S. universities at domestic tuition rate, admission standards and apply for government-sponsored financial aid > Permission to work at any company located in the U.S. > Permission to start and own a business > Right to receive social security benefits > Ability to apply for citizenship after five years Permanent residents enjoy most of the privileges of a U.S. citizen. 4

5 Advantage of EB-5 vs. other programs > Combination of Russian passport and green card or U.S. passport provides superb visa-free access around the world for the global professional > Ultimate out-of-pocket cost lower than most other programs, including Malta, Cyprus, UK and Caribbean programs > Designed to return investor capital within 5-7 years > Out of pocket costs limited to transaction costs, legal fees, etc. > One investment can provide a pathway to U.S. permanent residence or citizenship (if desired) for an entire family > The investment is dollarized, providing some hedge against fluctuations in the investor s primary currency 5

6 Return on USD investment An investor that exchanged RUB to USD on 1/1/2012 has enjoyed a return of over 75% solely from USD appreciation vs. RUB. 6

7 Eligibility > EB-5 investors generally have a high personal net worth and/or high level of income; general business sophistication, and: Clear criminal record Good health Legally obtained investment funds (traceable) > Applicants do NOT have to: Actively participate in the business financed by the EB-5 investment Live full time in the U.S. > Investment process takes an average of months to gain approval through USCIS > The source of funds for each investment has to be documented showing that the funds originated from a legal source 7

8 Value of a Broker Dealer > Review all of the offering materials very closely for disclosure of all risks, fees and conflicts of interest > Perform thorough due diligence on the project sponsor Assess the financial feasibility of the project and projected exit strategy to return your capital Carefully review the job creation study to ensure good cushion between the required number of jobs and projected jobs to meet the EB-5 requirements > Investments marketed by a FINRA broker dealer ensures that a professional licensed broker has performed independent due diligence on the project FINRA broker dealers are accountable to the U.S. Securities and Exchange Commission (SEC) to only present suitable investments to prospective EB-5 investors 8

9 EB-5 process Escrow Background check I-526 Consular processing Conditional permanent resident I-829 Legal permanent resident Investment returned (subject to risk) Citizenship (optional) 9

10 Typical costs > EB-5 Investment - $500,000 if made within a Targeted Employment Area ( TEA ), otherwise $1,000,000 > Administrative Fee est. $40,000 to $60,000 Used by the regional center and issuer to pay placement fees, and recover costs to issue and sell the EB-5 securities > Immigration Attorney est. $10,000 to $15,000 Investor to retain their own legal representation to assist with USCIS filings and source of funds > Tax Planning variable Customized tax planning opportunities are provided for investors through Baker Tilly Capital > Travel to U.S. or to U.S. Consulate for visa interview and processing 10

11 Tax planning considerations > Upon issuance of a conditional EB-5 visa, the investor is subject to global U.S. taxation (subject to tax treaties & credits) > Tax planning should take place before the conditional visa is issued > Planning ahead with a professional can result in significant savings > EB-5 investments through Baker Tilly Capital include customized immigration tax planning opportunities from Baker Tilly Virchow Krause, LLP 11

12 Role of Baker Tilly Capital > Perform due diligence on each transaction to offer projects to investors that are suitable and reasonably ensure job creation and financial feasibility > Bring local knowledge and experience to each transaction; all projects presented will be from experienced sponsors who have an established track record > Coordinate the investment process and provide trusted assistance throughout the investment period Baker Tilly is a known and trusted professional services firm and will deliver exceptional client service 12

13 Visit our booth to learn more The MC Luxury Marriott Hotel EB-5 Opportunity New York City Metropolitan Market 13

14 Contact us Michael Fitzpatrick Olga Etlicher Tom Holter Anna Ferinde Kevin Wright

15 Disclosure This information should not be construed as a recommendation, an offer of services, or an offer to sell, or solicitation of an offer to buy a particular security or investment strategy. The reader should not rely on this information other than as authorized by a written agreement with Baker Tilly Capital, LLC. The commentaries provided are opinions of Baker Tilly Capital, LLC and are for informational purposes only. While the information is deemed reliable, Baker Tilly Capital, LLC cannot guarantee its accuracy, completeness, or suitability for any purpose and makes no warranties with regard to the results to be obtained from its use, or whether any expressed course of events will actually occur. Securities involve risk and possible loss of principal. Past performance does not guarantee future results. No compensation has been paid to person providing a testimonial. Any testimonial is not representative of the experiences of other clients and is not indicative of future performance or success. Securities, when offered, and transaction advisory services are offered through Baker Tilly Capital, LLC, Member FINRA and SIPC; Office of Supervisory Jurisdiction located at Ten Terrace Court, Madison, WI 53718; phone Baker Tilly Capital, LLC is a wholly-owned subsidiary of Baker Tilly Virchow Krause, LLP, an accounting firm. Baker Tilly Virchow Krause, LLP is an independently owned and managed Member of Baker Tilly International. 15

Aggregate Transaction Value ($BB) Number of Deals 2.3% 9.3% 9.3% Healthcare Info. Tech. Consumer Industrials 7.0% 18.6% 7.0% Financials Materials

Pittsburgh regional M&A update: Q2 2018 Aggregate Transaction Value ($BB) Number of Deals $70 80 $60 $58.7 70 $50 60 $40 $30 $20 $10 $0 $2.1 $2.9 $26.9 $0.4 $1.5 $7.7 $1.9 $2.8 $6.5 $2.5 $2.1 $4.2 $19.9