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THE EB-5 INVESTMENT VISA
THE MOST DESIRED INVESTMENT IMMIGRATION PROGRAM IN THE WORLD
W E S T P O R T M I A M I S Ã O P A U L O M U M B A I S H A N G H A I
U.S. Residency Through InvestmentThe EB-5 Investor Visa Program provides U.S. green cards and permanent residency to international investors
and their immediate families (children up to age of 21) through a one-time minimum investment of $500,000
USD into a new U.S. business that creates 10 or more American jobs.
EB-5 Program Overview ....................................................................................................................................4
Regional Center Overview | LCR Capital Partners LLC ...................................................................................16
Brand Overview | Dunkin’ Donuts ...................................................................................................................22
Project Overview | American Opportunity Franchise Fund IV, L.P. ................................................................28
3
THE WORLD’S BEST INVESTMENT IMMIGRATION PROGRAM
Country Program Name Minimum Investment
Cyprus Citizenship By Investment $5,500,000
Australia Business Innovation and Investment Visa $4,072,000
United Kingdom Tier 1 Investor Visa $2,500,000
Singapore Global Investor Programme (GIP) $2,000,000
Malta Individual Investment Programme $1,350,000
New Zealand Entrepreneur Work Visa $1,160,000
Portugal Golden Residence Program $589,000
United States EB-5 Immigrant Investor Visa $500,000
St. Kitts & Nevis SIDF $430,000
INCR
EASI
NG
COST
“#1 Best Way For Investors To Immigrate To The U.S.”
– Forbes (July 2014)
The minimum EB-5 investment amount $500,000 has not changed since 1990 and will likely increase to at least $800,000 by September 30th, 2016.
EB-5
Pro
gram
Ove
rvie
w
The fastest, simplest and most reliable way to achieve permanent residency in the United StatesAdministered by the United States Citizenship and Immigration Services
(USCIS), the EB-5 program approves and designates Regional Centers,
such as the LCR Overseas Regional Center, to attract foreign investment
into the U.S.
The EB-5 program has experienced explosive growth starting from a
base of $300 million of EB-5 capital in 2009 to over $6.5 billion in 2015,
primarily due to the program’s rapid adjudication times and high individual
approval rates.
Since the program’s inception in 1990, thousands of immigrants have
received permanent U.S. residency, creating hundreds of thousands of
American jobs, at no cost to the U.S. taxpayer.
5
EB-5 PROCESS & TIMELINE
1By signing Application Letter, LCR will hold one of the remaining slots in our AOFF funds for a specific amount of time [no longer than 3 months].
KEY EB-5 REQUIREMENTS
There are 5 key requirements for immigrant investors to successfully participate in the EB-5 program:
Application Process
Receive Conditional Green Card
Receive Permanent Green Card
1. Sign LCR Application Letter to begin mutual evaluation process as well as reserve a remaining slot in one of our EB-5 projects1
2. Complete Investor Questionnaire
3. Review Confidential Offering Materials
4. Hire U.S. immigration/tax planning specialist
5. Wire EB-5 Investment and Admin Fee into U.S. Escrow Account
6. Complete I-526 Petition, including Source of Funds Analysis
7. Submit I-526 petition to USCIS
8. USCIS review of I-526 petition
Criteria Include: � Does business plan demonstrate likelihood of creating 10+ jobs?
� Was required amount invested in new project?
� Were investment funds lawfully sourced?
9. Approval of Conditional Green Card for investor and immediate family
10. U.S. Consulate interview or Adjustment of Status
11. Visit the United States within 180 days of approval
� Green card holder must visit the U.S. no less than once per year
12. USCIS review of I-829 petition
13. Submit proof that 10+ jobs were created
14. Approval of Permanent Green Card — 99%+ approval rates in FY2015
RETURN OF CAPITAL TO INVESTOR
(No earlier than year 5)
Minimum Capital
Requirement
New U.S. Jobs Requirement
Background Check
Legally Sourced
Investment
”At Risk” Investment
$500,000 investment in a new business or real estate project
� Over 98% of EB-5 investors invest through Regional Centers at $500,000 level
� $1 million option available for EB-5 direct investments
Create or preserve at least ten full-time jobs for American workers
Proof that investor is not a convicted criminal, no history of financial f raud or has no t previously violated U.S. immigration laws
Can clearly document that the funds required to make the investment come from a lawful source
Acceptable options include: � Salary � Gifts of money from family & friends
� Profits made from sale real estate or other assets
� Loan
Investment must be “At Risk” (i.e. fully invested in the project) for a period of no less than 5 years
Per U.S. law, the EB-5 investor cannot be offered any guaranteed return on or of principal nor possess any redemption rights on capital
1 2 3 4 5
7
EB-5 ENJOYS HIGH APPROVAL RATES
I-526 Quarterly Approval Rates
I-829 Quarterly Approval Rates
Q1 2015 Q2 2015 Q3 2015 Q4 2015
93%
88%
92%
85%
100%
Q1 2015 Q2 2015 Q3 2015 Q4 2015
99% 99% 99%2015 average 99%
2015 average 89%
Common Reasons for I-526 Denials:
– Source of Funds – Background Check
Common Reasons for I-829 Denialsl:
– Insufficient Job Creation
EB-5 INVESTOR MARKETPLACE CURRENTLY DOMINATED BY CHINA
China: 8,156
Brazil: 34
Mexico: 77India: 111
UK: 84
South Africa: 30
Total EB-5 visas issued (investor plus dependents) in FY 20151:
South Korea: 116
Vietnam: 280
Russia:88
UAE: 9
Nigeria: 45
1Source: U.S. Department of State - Department of Consular Affairs - Report of the Visa Office 2015
Prior to 2009, foreign investors used only a small fraction of the 10,000 visas allocated annually to the
EB-5 program. In recent years, however, EB-5 demand has increased dramatically. In fact, Chinese
applicants reached their per-country limit in 2014 and again in 2015
Pakistan: 29
Source: USCIS website
Egypt: 36
9
KEY BENEFITS
PRE-COLLEGE DURING COLLEGE & POST COLLEGE
HIGHER UNIVERSITY ACCEPTANCE RATES
Most U.S. universities limit foreign student populations to 20% or less of the student body.
A foreign student, under an EB-5 visa, is treated as a U.S. resident applicant and thus will not be impacted by limitations applied to international students.
LOWER TUITION RATES
As a U.S. green card holder, your children may qualify for reduced “in-state” tuition rates.
� Foreign student tuition rates at top U.S. public universities maybe as much as $200,000 higher than “in state” tuition over a four year period
SCHOLARSHIPS/AWARDS
As a U.S. green card holder, students may qualify for merit-based scholarships and awards reserved only for U.S. residents and citizens
EXPANDED EMPLOYMENT OPPORTUNITIES
Live and work anywhere in the U.S. and pursue full range of professional and business opportunities in the world’s largest economy
Despite not having a U.S. GC, nearly one-quarter (20) of the 87 U.S. start-ups companies valued at over $1 billion had a founder who first came to America as an international student.1
REMOVE UNCERTAINTY FROM YOUR CHILDREN’S EMPLOYMENT POSSIBILITIES
Foreign university students and graduates are subject to a highly competitive lottery system in order to obtain the required H1-B employer-sponsored visa
� In April 2015, the USCIS held lottery for 65K H1-B visas from over 233,000 applications
� H1-B visa holders from India, for example, typically wait 8 to 10 years for a green card
� According to NY Times, nearly 70% of H1-B visas were issued to the top 5 Indian outsourcing firms in 2014
U.S. Residents International
8.8% 2.8%
19.5% 8.8%
5.9% 2.1%
One of the most popular EB-5 investment options is for parents to donate the investment amount as a gift
to their son or daughter and have them become the EB-5 investor.
Given the overwhelming surge in applications from international students, the competition for acceptance
into American universities is fiercer than ever
U.S. GREEN CARD IS VOLUNTARY AND CAN BE RETURNED AT ANY TIME
POTENTIAL BENEFITS WHEN APPLYING TO U.S. COLLEGES
� No Student Quota � Lower Tuition Costs � Access to ScholarshipsSon/Daugther
Submits I-526 as EB-5 Investor
Father/Mother/ Relatives Donate
the $500K to Son/Daughter
Son/Daugther Obtain U.S. Green Card
This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visithttp://www.djreprints.com.
http://www.wsj.com/articles/international-students-stream-into-u-s-colleges-1427248801
Suffyanah Algheithy, 20, a senior at the University of Colorado Boulder, chats with fellow students at aninternational-student gathering last month. PHOTO: NATHAN W. ARMES FOR THE WALL STREET JOURNAL
1 IMMIGRANTS AND BILLION DOLLAR STARTUPS (March 2016); National Foundation for American Policy
KEY BENEFITS
POTENTIAL CAREER BENEFITS � Not subject to annual H1-B visa lottery � No need to find local company sponsor � Difficult job mobility
EB-5 DONATION OF $500K TO SON OR DAUGHTER
11
Hedge Local Currency
Depreciation
Use U.S. dollar-denominated EB-5
investment as depreciation hedge vs. local currency.
Direct Path to U.S. Citizenship
Can apply at the five year anniversary of
receipt of their conditional resident status.
No Expiration Date
The U.S. green card does not expire nor do your children lose when
they turn 21.
Easy to Qualify
No specialized skills required. No travel or age restrictions, and no language skills
requirement.
Residency Safety Valve
Back-up plan in situations of political instability or crisis
OTHER KEY BENEFITS REPRESENTATIVE ECONOMICS FOR EB-5 INVESTOR
1 Admin fee is used to cover upfront expenses such as project underwriting, business plan writers, econometrics jobs report, securities attorney fees, TEA designation and escrow service.2 LCR works with several top EB-5 immigration firms. The fees shown include source of funds analysis and are representative in nature.3 LCR AOFF IV investor receives an annual preferred return on capital of 1.50%.
IMPORTANT NOTE: LCR recommends each prospective investor seek guidance from U.S. tax planning specialist [fees not included above] and is happy to refer you to pre-immigration tax specialists.
Total Investment Costs/Fees
Timeline Application I-526 Approval I-829 Approval Sub-totals
USCISI-526 Filing Fee
($1,500)I-485 Filing Fee
($985)I-829 Filing Fee
($3,750)($6,235)
Immigration Attorney
($15,000) ($5,000) ($10,000) ($30,000)
LCR CapitalAdministration Fee1
($60,000)($60,000)
InvestmentEB-5 Investment
($500,000)$537,500 $37,000
Step Sub-totals
($576,500) ($5,985) $523,750
Total Cost $58,735
Return of Principal $500,000
13
Each year, the U.S. awards around 1 million new green cards to citizens from all over the world. No other
country is close to approaching the sheer number and diversity of immigrants that are welcomed by the
United States.
U.S. GREEN CARD MARKET IS GLOBAL
0 1 2 3 4 5 6 1 0 +
100%
75%
50%
25%
0%
Time to Recieve Green Card (years)
Ease
& C
erta
inty
of O
btai
ning
Gre
en C
ard
Lottery
H1-BL-1
EB-5
Family Sponsor
EMPLOYMENT PREFERENCE CATEGORY
Every year around 140,000 visas are granted on account of sponsorship by U.S. employers
First (40,000) Priority workers, which include persons of extra-ordinary ability in arts, science, education, business and athletics or outstanding professionals and researchers
Second (40,000) Professionals with advanced degrees or exceptional abilities
Third (40,000) Professionals and skilled or unskilled workers
Fourth (10,000) Religious workers and various miscellaneous categories of workers
Fifth (10,000) EB-5 investors
FAMILY PREFERENCE CATEGORY
Every year 226,000 immigrant visas are issued on account of family relationship with U.S. citizens or green card holders.
First (23,400) Unmarried people of any age, who have at least one U.S. citizen parent
Second (114,200) (A) Spouses of unmarried children of green card holders under the age of 21 years (B) Unmarried sons and daughters above 21 years of green card holders
Third (23,400) Married people of any age, who has at least one U.S. citizen parent
Fourth (65,000) Sisters and brothers of U.S. citizens, where the citizen is over 21 years old
Top Places of Origin1
U.S. GREEN CARD ALTERNATIVES
Class of Admission Sixty-six percent of new green cards were granted
based on a family relationship with a U.S. citizen or
lawful permanent resident, however the average
waiting time for such visas can be as much as 10
years, depending on individual circumstances.Family-Sponsored,
210,303
Immediate Relatives of
U.S. Citizens, 439,460
Employment-Based: 151,110
Diversity, 45,618
Refugees and Asylees,
119,630
Other, 14,432
The EB-5 investment visa compares favorably to all
other U.S. green card alternatives
GREEN CARD LOTTERY: Green Card Lottery: Each year, 55,000 immigrant visas are granted through an annual lottery.
CHINA
71,798 7.2%INDIA
68,458 6.9%
PHILIPPINES 54,446
5.5%
VIETNAM 27,101
2.7%
SOUTH KOREA
23,166 2.3%
1 Source: DHS Office of Immigration Statistics; # of Green Cards Issued in 2013 / Growth Rate (’12-’13)
MEXICO
135,128 -7.7%
BRAZIL 11.033
-6.2%
EGYPT 10,924
21.5%
INDONESIA 2,713
4.2%
IRAN 12,863
1.3%
PAKISTAN 13,251
1.3%
EB-5, 10,000
15
Reg
iona
l Cen
ter O
verv
iew
An emerging leader in the EB-5 industryFounded in 2012 by first-generation U.S. immigrants who met at Harvard
Business School in the mid 1990’s, LCR Capital Partners is a partner-
owned investment firm that deploys EB-5 investments as growth capital in
the well established U.S. franchise industry, primarily in the quick service
restaurant (QSR) sector.
Strong QSR franchise brands are ideally suited for our EB-5 investors as
they have long, proven histories of operating success and are one of the
most efficient.
As a firm with many first generation immigrants, LCR has taken a client-
centered approach to how it designed its EB-5 franchise finance funds
to meet the needs and mitigate the risks of our investors, an approach
markedly different than many others in the EB-5 space.
FIRM OVERVIEW
LCR has transformed a government immigration program into a standardized,
transparent financial product that maximizes job creation, mitigates risk and
protects investors’ principal.
LCR’s primary client base comes from high net worth investors from Latin
America, China, India and the Middle East.
LCR is headquartered in Westport, CT, has offices in Miami, FL, São Paulo,
Brazil, and Mumbai, India. The firm will be establishing operations in Shanghai
and in the Middle East by the end of 2016.
“LCR Capital Partners…could be a game changer in the franchise finance world.”
– Franchise Times (September 2014)
17
SENIOR MANAGEMENT TEAM
LCR’s senior management team met at Harvard Business School in the mid 1990’s and since then has
built and established distinguished track records while serving at many of the world’s premier organizations
including: McKinsey & Co., Goldman Sachs, UBS, Credit Suisse, BlackRock, EMP Global, Wasserstein Perella,
Nomura, INVESCO, Fox Point Capital, the U.S. Congress, and other leading global institutions.
Background
Suresh Rajan CEO
� Dunkin’ Donut Multi-Unit Operator � Consultant at McKinsey & Company � U.S. Congressional Aide � Harvard MBA 1997
Rogelio Caceres Co-Founder & CMO
� Founding Exec and Head of Sales for start-up Professional Services firms � Latin America Private Equity at EMP Global � Investment Banking at Wasserstein Perella � Harvard MBA 1997
Joseph Haggenmiller COO
� Quantitative Hedge Fund Manager � Equity Derivative Structuring at Credit Suisse and UBS � Investment Banking at RBC Dain Rauscher � Harvard MBA 1997
Scott Schweitzer CFO
� Head Trader / Chief Operating Officer at Fox Point Capital � Prime Brokerage at Deutsche Bank � United States Air Force � Harvard MBA 2005
Marc Sharpe Managing Director
� Chairman of The Houston Family Office Association � Investment Management at Goldman Sachs & Co. � Investment Banking at Wasserstein Perella & Co. � Harvard MBA 1998
Carlos Higuchi Managing Director
� Alternative Investments at Invesco � Debt Capital Markets at Nomura � BA Economics at UCLA
Carlos Hawker Chief Development Officer, Latin America
� Commercial Banking at HSBC Brazil � Investment Management at BlackRock Latin America � Fordham LLM 2008
DEEP EXPERTISE IN FRANCHISE OPERATIONS AND LENDING
LCR combines expertise in lending, franchise strategy, and franchise operations – and applies its expertise
to benefit EB-5 investors.
$300 million Amount of Capital Loaned
35 Franchise Brands Funded
>3,000 Franchise Store Locations (Originated & Funded)
<2% Default Rate
Created over 75,000 Jobs
*Mount Pleasant Capital, owned and operated by Bob Rodi, serves as LCR’s exclusive strategic partner in all of its franchise finance activities.
Operations and development
Strategy Lending and credit risk analysis
Suresh Rajan CEO
Lynette McKee Chief Development Officer
Bob Rodi Exclusive LCR Strategic Partner
LCR’s Exclusive Strategic Partner Track Record*
Experienced owner/operator of Dunkin’ Donuts stores across
the U.S.
Former Vice President of Franchising for Dunkin’ Donuts and Burger King
Owner of Mount Pleasant Capital, a premier underwriter of franchise loans to over 3,000 restaurant stores over
the last 30 years
19
EXPERIENCED REGIONAL CENTER: LCR’S EB-5 TRACK RECORD
LCR currently operates two Regional Centers:
#1. LCR Overseas Regional Center (NY, NJ, CT and PA) was approved in May 2014
#2. LCR Atlantic Gulf Regional Center (Florida and Georgia) was approved in December 2015
LCR successfully closed its first EB-5 project, the American Opportunity Franchise Fund I, LP, in September 2015.
LCR EB-5 PROJECTS SIZE TERRITORYPREFERRED
RETURNSTATUS
American Opportunity Franchise Fund IV, LP Up to $49 Million TX, AL, LA, MS 1.50%Marketed in
Rest of World
American Opportunity Franchise Fund III, LP Up to $49 Million GA, TN, NC, SC 0.25%Marketed in China
(primarily)American Opportunity Franchise Fund II, LP Up to $49 Million FL 0.25%
American Opportunity Franchise Fund I, LP $12 Million NY, CT, PA & NJ 0.25% CLOSED
REGION STORES1 PENETRATION
Core 4,049 1:8,900
Established 2,675 1:20,100
Emerging 1,196 1:74,200
West
320 1:406,000
TOTAL 8,240 1:37,500
FUND I
FUND III
FUND II
FUND IV
100% FOCUS ON OUR INVESTORS’ NEEDS
LCR Capital Partners works closely with investors throughout the entire immigration and
investment process, providing consistent reporting and ongoing updates about the progress
of the project and the status of their investment.
Investor PortalEach investor will have proprietary access to a confidential investor portal, provided by NES Financial, to track LCR’s progress regarding job creation and capital deployment.
Independent OversightLCR’s EB-5 investors’ capital enjoys multiple layers of oversight including, Primary Capital – a U.S. SEC-licensed broker-dealer, reviews documentation and the offering process to ensure compliance with U.S. securities laws
NewslettersQuarterly newsletters that detail current project updates and announcements, important industry news, LCR’s charitable efforts in our investors’ home countries and LCR travel and speaking engagements
Site ToursBi-annual due diligence visits are conducted by LCR Capital on project sites across the country, allowing us to monitor the progress of construction and operations of each project.
21
LCR CLIENTS: FEEDBACK & PROFILES
LCR’s EB-5 investors and their families include accomplished financial executives, doctors, successful
business executives and entrepreneurs, and U.S. college students. They range in age from 1 to 56 years old.
LCR’s focus on transparency and investor protection has yielded positive feedback from our EB-5 investors
from all over the globe:
“Like everything in life, the project has a risk, but it seems to be a very small risk, and it is done by competent people.”
“Other visas don’t have the same flexibility. If my children keep their student visas, after they graduate, they will need to get a work visa or find a company to sponsor them.”
“It is not in my interest to manage a new business and I don’t have the experience. That is why I did not choose the direct EB-5.”
Fmr. Senior Executive at UBS
Sponsoring: Himself, wife and 2 sons Destination: Washington DC
Fmr. Managing Director at Merrill Lynch
Sponsoring: Herself, husband and 2 children (E-2 Visa expiring) Destination: Boston, MA
Teacher
Sponsoring: Herself and her son Destination: New York City, NY
Agriculture & Farm Owner
Sponsoring: Himself and his wife Destination: Miami, FL
“I chose LCR for the EB-5 program for 2 reasons: the design of their project, which looks very good, and a presence here in Brazil, which makes our contact much closer.”
Client Services Director
Sponsoring: Herself and her husband Destination: Boston, MA
Student
Sponsoring: Investment donated by parents Destination: Carnegie-Mellon in Pittsburgh, PA
23
Bra
nd O
verv
iew
LCR Capital Partners is pleased to select Dunkin’ DonutsGiven our intimate familiarity and experience with the Dunkin’ brand, as
operators, lenders and senior company executives, LCR is pleased to help
fuel it’s expansion across the United States. As the 7th largest U.S. restaurant
chain and one of the fastest growing, Dunkin’ has attractive new store
development opportunities across most of the country, as the majority of
Dunkin’ stores are currently concentrated in the Northeastern United States.
1GE Capital Franchise Finance | 2015 Chain Restaurant Industry Review22015 DNKN 10-K Report3Performance through September 30th, 20154Dunkin’ Donuts Franchise Disclosure Document 2015Source: Dunkin’ Brands 2015 Investor & Analyst Day; October 1st, 2015
60 Years of Brand Heritage and
Track Record
SIGNIFICANT U.S. & GLOBAL GROWTH
OPPORTUNITY
$7.2 billion System-Wide
Revenue1
Over 11,000 restaurants in 42 countries around
the world2
$811 million Revenues
(FY 2015)
Publicly-traded company
(NASDAQ: DNKN)
$4.2 billion Market Capitalization
(3/28/16)
47 Consecutive Quarters
of Comparable Store Sales Growth3
Dunkin’ Donuts is a unique brand in the U.S. QSR space
PROVEN, GROWTH-FOCUSED BRAND
1.3% Store Closure Rate4
25
As a nearly 100% franchised business, Dunkin’ relies on its experienced operators/franchisees for new
store development. Compelling unit store economics drive accelerated growth.
COMPELLING STORE ECONOMICS
Average Construction Cost $865,000
Average Unit Volumes $890,000
Source: Dunkin’ Brands 2015 Investor & Analyst Day; October 1st, 2015
TOP 10 U.S. RESTAURANT CHAINS [BY REVENUES] IN 20151
Rank Chain SegmentSystemwide
Sales (in $ MM)
% ChangeSales per Unit
(in $ MM)Total U.S. Units
Change in Units
1 McDonald’s Sandwich S35,447 -1.1% $2,500 14,350 72
2 Subway Sandwich $12,057 -1.7% $448 26,988 523
3 Starbucks Snack $10,476 9.20% $1,400 7,3032 254
4 Burger King Sandwich $8,603 1.20% $1,256 7,095 -60
5 Wendy’s Sandwich $8,501 5.00% $1,488 5,745 -46
6 Taco Bell Sandwich $8,133 4.40% $1,441 5,526 150
7 Dunkin’ Donuts Snack $7,175 6.40% $888 8,082 405
8 Pizza Hut Pizza $5,585 -1.1% $843 6,356 57
9 Chick-fil-A Chicken $5,477 8.40% $3,406 1,850 75
10 Applebee’s Casual $4,592 1.60% $2,465 1,870 -34
DUNKIN’ IS THE 7th LARGEST RESTAURANT CHAIN IN THE U.S.
1GE Capital Franchise Finance | 2015 Chain Restaurant Industry Review2Source: Statista – Starbucks operates 7,303 company-owned stores and 4,659 licensed stores.
Dunkin’ Donuts built more net new stores in 2015 (405) than any other major franchise restaurant
company except Subway
Average Operating Earnings (Year 1) ~ $145,000
Store Valuation Multiple (Cap Rate) ~ 17.3x
Average Dunkin’ Store Valuation ~ $2,500,000
27
DUNKIN’ DONUTS IS THE #2 U.S. COFFEE CHAIN
1Source: Dunkin’ Brands Q2 2015 Investor Presentation2Source: GE Capital Franchise Finance
In 2015, there were 8,082 Dunkin Donuts stores
operating in the U.S. versus 11,962 Starbucks stores.1
According to the 2015 Chain Restaurant Industry
Review, Starbucks and Dunkin’ control 90% of the
U.S. snack market.2
50.1%39.5%
10.4%
All Others
DUNKIN’ ENJOYS LOW STORE CLOSURE RATESAccording to their latest Franchise Disclosure Document, the 2015 Dunkin’ store closure rate across all
types of operators/franchisees equaled 1.3%
Dunkin’s store closure rates compare favorably to the loan delinquency rates of retail real estate properties
across at the United States2
Several of the key root causes for QSR store closures include:
1According to the NPD Group/CREST® (“CREST®”)2Moody’s Delinquency Tracker and DD FDD documents (2012 to 2015)Source: DNKN 2015 10-K report
7.2% 7.4%
6.2% 6.0%6.3%
1.5%1.9%
1.3% 1.3% 1.2%
Retail RE Delinquency Rate DD Store Closure Rate
2011 2012 2013 2014 2015
Product Risk Site Selection Risk Operator Risk
Coffee � In 2015, there was 8 billion restau-rant servings of coffee1
� Represents over 80% of DNKN’s revenues
Substitute Products � Coffee consumption is inelastic and one of the last daily expenditures to be cut in a recession
Strict & Proven Criteria DNKN has a defined, set of specific new site criteria based on 60+ of operating history
DNKN requires each new site location to be approved by its Chief Development Officer
DNKN requires the new site selection to match the new store’s build out costs and unit sore economics
Single/Small Unit Operators � LCR does not lend to these type of operators
Multi-Unit Operators Only � Awarded the best new territories and premier development rights
� Operator risk mitigated by: – Deep management bench strength
– Strong network cash flow
– Real-time loan monitoring: Early warning detection systems tied to real-time store data
29
TRACK RECORD OF GROWTH IN NEW STORES ACROSS THE U.S.
According to an S&P Capital IQ report (3/19/16), DNKN will increase the number of distribution points in the
U.S. by about between 435 and 470 net new units in 2016 and “believe DNKN has significant growth
opportunities through more store openings of Dunkin’ Donuts in the western part of the U.S.”
DUNKIN’ DONUTS U.S. NET DEVELOPMENT
2009 2010 2011 2012 2013 2014 2015E
171206
243291
371405
410-440
3.10% 3.60% 4.10% 5.10% 5.30%
31
Proj
ect O
verv
iew
LCR’s American Opportunity Franchise Fund IV, L.P. LCR’s fourth EB-5 project, AOFF IV, provides experienced multi-unit
operators with senior-secured loans to partially finance the construction
of up to 72 new Dunkin’ restaurants across the states of Texas, Alabama,
Louisiana, and Mississippi. Each of our borrowers endures a rigorous,
underwriting process before being selected. LCR typically requires each
borrower to contribute on average 25% of new store development cost
with their personal equity. LCR will also invest in construction of Dunkin’
buildings to be leased to same Dunkin’ operators.
Up to 98 EB-5 INVESTORS
~Up to 72 DUNKIN’ DONUTS STORES
Up to $49 MILLION IN EB-5 CAPITAL
2,432 JOBS
24.8 JOBS / INVESTOR
AOFF IV INVESTMENT STRUCTURE
EB-5 INVESTORS
LCR Overseas Regional Center LLC
LCR AOFF IV, L.P.
$60K ADMIN FEE $500K
LCR Franchise Finance LLC
Loans to partially finance
development of new stores
Land purchases to
generate rental income
INVESTORS ARE REPAID THEIR ORIGINAL INVESTMENT*
after a 5 year period
$500,000
Return of Principal
$37,500
Preferred Return on Capital
LCR’s investment platform allows our investors to participate across multiple job creating stores rather than
rely on a single EB-5 project.
UP TO 72 DUNKIN' STORES
Year 0
Years
0 to 2
Year 5
*EB-5 regulations expressly prohibit the guaranteed return of the EB-5 investors’ principal investment amount. 33
STRONG JOB CREATION IN THE EB-5 INDUSTRY
JOB-CREATION POWER OF U.S. FRANCHISES
� QSR franchises are one of the highest job-creating industries in the U.S. � The franchise industry accounts for 17.4 million (or 1-in-8) U.S. jobs, and 10% of new U.S. job creation.1
� The QSR segment of the U.S. restaurant industry accounted for approximately $269 billion of the total $431 billion restaurant industry sales in the U.S. for the twelve months ended Dec. 31st, 2015.2
ECONOMIC STUDY
� Former Chief Economist at USCIS, Kim Atteberry, wrote LCR’S AOFF IV econometric jobs study
Jobs Required by USCIS Jobs Created by AOFF IV
248% Cushion
980
2,430
1ADP National Franchise Report 2DNKN 2015 10-K - The NPD Group/CREST
FOCUS ON PRINCIPAL PROTECTION AND RETURN
Diversified Portfolio
� LCR will make multiple loans to experienced multi-unit Dunkin’ operators to build new stores across large territory
� In the (unlikely) event of default of one or more loans, the portfolio structure of AOFF IV’s senior collateralized loans provides superior protection to an EB-5 investor’s principal
� In 2015, Dunkin’ had a new store development success rate of 98.7%
Senior Secured vs. Mezzanine
� LCR will only make senior-secured loans to the best Dunkin’ operators. This segment of operators typically have a net worth > $15 MM
� Traditional EB-5 real estate projects are mezzanine/subordinated loans in one asset, where default on loan may lead to zero recovery
� Dunkin’ Loan Recovery Rate is estimated to be around 80%
Land/Building Ownership
� AOFF IV may purchase land under its new store locations and thus add portfolio revenue through rental income and land sales at end of holding period
� Traditional EB-5 real estate projects typically have investment risk concentrated in one asset
Defined Exit Strategy
� AOFF IV has multiple exit strategies for its investors including loan maturity, sale of the loan portfolio and/or sale of business
� With a projected $70 million in revenue and principal return over 5 years, available cash projected for AOFF IV is expected to be more than enough to cover the $49 million in investor funds
35
AOFF IV’S PRINCIPAL PROTECTION VIA PORTFOLIO DIVERSIFICATIONDue to AOFF IV’s mutual fund structure, the risk of lack of repayment of principal is diversified across up to
72 senior-secured, 5 year new Dunkin’ store development loans.
AOFF IV repayment risk is also spread across multiple stores, operators and geographies.
AOFF IV EB-5 Investors
$500K
LCR AOFF IV, L.P. UP TO $49 MM
INVESTORS ARE REPAID THEIR ORIGINAL INVESTMENT
after a 5 year period
Up to 72 new Dunkin’ stores built across Texas and three other states
Average Construction Cost
Per Store $865K
LCR Franchise Finance LLC
Dunkin’ Multi-Unit Operators
Senior, 5 Year Loans
$650K
Franchisee Equity $215K
LCR AOFF IV, L.P.
Year 0
Years
0 to 2
Year 5
LCR’S EB-5 PROJECTS ARE SUPERIOR TO TRADITIONAL EB-5 PROJECTS
CRITERIA LCR STANDARD EB-5
Strong Job Creation 24.8 jobs per investor 12-13 jobs per investor
Investment Structure Diversified Portfolio of Loans All investors in single project
Place in Capital StructureSenior-Secured / Cross-Collateralized
Often Subordinated-Unsecured Debt
Proven Exit StrategyLoan Maturity/Sale of Business/ Sale of Portfolio
Unclear/Uncertain
Top Quality Brand Global, proven QSR brands onlyBrands/projects with no other source of capital
Minimum # of Investors None Need all investors to start
U.S. SEC-registered Broker Dealer To ensure our investor’s protectionLess than 10% of Regional Centers use Broker/Dealers
EB-5 Holding Period 5 years 6-10 years
5 Year Annual Dunkin’ Store Closure Rate = 1.44%
Historical Dunkin’ Loan Recovery Rate = 80%
37
INVESTMENT PHASE
1-2 months
CAPITAL DEPLOYMENT
PHASE
Years 1-3
CAPITAL RETURN PHASE
Year 5
LIFECYCLE OF AN LCR EB-5 INVESTMENT
Client’s immigration attorney reviews LCR confidential
investor documents
Client makes EB-5 investment
$500,000 Held in escrow account
at PNC Bank
($500,000) Deployed as senior-secured loans to partially finance construction of new Dunkin’ stores
$500,000 Repayment: 5 year
loans are repaid by Dunkin Donuts
franchisees
$37,500 Preferred Return:
Investor receives a 1.5% per year preferred return
Upon I-829 approval, LCR wires money back to the U.S. bank of the
investor’s choosing
LCR investor has access to customized portal and has full visibility to how capital is being deployed (# of new stores, job creation etc.)
I-8291.5%
Week 1 Weeks 2-3 Weeks 3-4 Week 5 Week 6
Investor
LCR
Immigration Attorney
SUGGESTED I-526 APPLICATION PLAN
Signs Application
Letter
Engages immigration
attorney
Reviews Welcome
Pack*
Sends Investor Questionnaire, W-8BEN and Copy of the Passport for
LCR
Sends signed Signature
Booklet to LCR
Wires Admin Fee ($60K) into AOFF |V U.S. Escrow
Account
Translation of all required documents
into English
Sends full set of translated docs to immigration firm
Wires EB-5 investment ($500K) into AOFF |V U.S. Escrow Account
Conducts final review
LCR sends Welcome
Pack*
Schedule call with experienced immigration firm
Conducts final review
Begins preparation of I-526
Finalizes source of funds
documents
I-526 Submit
Application
*Welcome pack includes: � Investor Questionnaire � I-526 Document Checklist � Signature Booklet 39
LETTER OF REGIONAL CENTER DESIGNATION
Date: May 16, 2014 Suresh Rajan LCR Overseas Regional Center, LLC One Stamford Plaza, Regus Worldwide, 263 Tresser Blvd., 9th Floor Stamford, CT 06901 Application: Form I-924, Application for Regional Center under the Immigrant
Investor Pilot Program Applicant(s): LCR Overseas Regional Center, LLC Re: Initial Regional Center Designation
LCR Overseas Regional Center, LLC RCW1402951663 / ID1402951663
This notice is in reference to the Form I-924, Application for Regional Center under the Immigrant Investor Pilot Program that was filed by the applicant with the U.S. Citizenship and Immigration Services (“USCIS”) on January 29, 2014. The Form I-924 application was filed to request approval of initial regional center designation under the Immigrant Investor Program. The Immigrant Investor Program was established under § 610 of the Department of Commerce, Justice and State, the Judiciary, and Related Agencies Appropriations Act of 1993 (Pub. L. 102-395, Oct. 6, 1992, 106 Stat. 1874). I. Executive Summary of Adjudication
Effective the date of this notice, USCIS approves the Form I-924 request to designate LCR Overseas Regional Center, LLC as a qualifying participant in the Immigrant Investor Program. II. Regional Center Designation USCIS approves the applicant’s request to focus, promote economic growth, and offer capital investment opportunities in the following geographic area and industry categories:
U.S. Citizenship and Immigration Services Immigrant Investor Program Mailstop 2235 Washington, DC 20529
LETTER OF SUPPORT FOR LCR
41
MESSAGE FROM LCR’S CEO
February 2016
Dear Investor,
As a firm founded by first generation U.S. immigrants, LCR takes its mission very seriously: to serve as a
trusted and reliable partner to our EB-5 investors as they successfully navigate a transition towards U.S.
residency.
By transforming a government immigration program into a standardized financial product that maximizes job
creation, mitigates risk and protects investors’ principal, our firm’s EB-5 franchise finance funds continue to
be rewarded by strong international investor demand, both from our original investor markets such as Brazil
and China as well as emerging EB-5 markets like India and the Middle East.
We would like to thank our investors for their continued support and confidence in our abilities, our Board
for their leadership, and our employees for their collaboration and deep commitment to our rapidly emerging
firm.
Sincerely,
Suresh Rajan
CEO
43
LCR Capital Partners, LLC315 Post Road West | Suite 200 | Westport, CT | 06880
+1 203.883.1940 | [email protected]
www.lcrEB5capital.com
This material does not constitute investment advice, an offer or commitment to sell securities, a solicitation of any offer to purchase securities, or any advice or recommendation to enter into or conclude any EB-5 sponsored transaction. You should consult your legal counsel, accountants, and/or tax
advisors prior to making any decision or taking any action concerning the information provided in this document.