Subject: Fwd: Good feedback from foreign investment source
From: "Eric Schwerin" <[email-masked]>
To: "Hunter Biden" <[email-masked]>
Date: Fri, 11 Mar 2011 18:11:51 -0500

See below.  Some of it is overly involved and I don't recommend we spend any time on this, but the one interesting thing which I had heard before are there are these programs to attract foreign investors (EB-5 program) where investors are rewarded with Green Cards and Permanent Visas for investing in the U.S. (if there is a job creation angle).   They are usually undersubscribed because people don't know about this.   They only time we could use this with RR is if the building were being retrofitted afterwards (hence the job creation).

Eric D. Schwerin
Rosemont Seneca Partners, LLC
1010 Wisconsin Ave., NW
Suite 705
Washington, DC 20007
(202) 333-1880
[email-masked]
P Consider the environment before printing this email.

Begin forwarded message:

From: "Alex Lofft" <[email-masked]>
Date: March 11, 2011 11:25:42 AM EST
To: <[email-masked]>
Cc: "Eric Schwerin" <[email-masked]>
Subject: Good feedback from foreign investment source

Hey Devon,
 
I spoke with one of the two principals at Midwest Center for Foreign Investment (MCFI) in Louisville. 
 
An MD and native of India, Dr. Jayeth Sheth has been helping place foreign money for a while which is what led to his forming MCFI with another well to do entrepreneur, Dr. Robert Robbins.
http://www.eb5possibilitycenter.com/AboutUs/Management.aspx .

MCFI-related Investment
 
Investment through MCFI, the fees are cut from the investment returns to the foreign investors (after principle) so it sounds like structurally they wouldn’t tap the flows of cash in and out of Rosemont (which is good). 
 
The MCFI program is what needs to be tied to job creation and largely focused on a 65 county area centered on Louisville, which is itself a fairly robust and diversified market.  I think working within the MCFI framework, Rosemont would look at the value acquisition of distressed assets approach I floated – to line up more potential job creation – that replaced the debt element with foreign investor cash to lower the carry risk and extend the time horizon on returns.  Perhaps as a sub-fund of RREAF.
 
An example is a project they are already undertaking.  MCFI recently acquired a huge, iconic property on the river known as the Colgate soap plant (article attached) which they are redeveloping into a tech and health campus, including hotel, shopping area so they are already operating at a pretty high level. 
 
Dr. Sheth and I talked about a business incubator to capture yet another potential source of job creation and additional upside for the investment.  A health care startup company I represent and helped introduce to MCFI in the fall may be a candidate to test the incubator idea.  (That was how I came to know this group in the first place).

General Investment
 
Beyond MCFI, they can help raise funds from foreign investors that have more $$ than the EB-5 program would need, so those funds could be used for any purpose, including the main RREAF fund.  Your investment return track record meet the criteria they would seek.
 
I assume you have a model for structuring “finder fees” for the sources of investment capital if they brought in a few to you.

Next Step
 
So, it would seem, the next step is to put you and Jayeth (“Jay”) in direct touch… (and maybe a face to face at the Kentucky Derby??) 

Cheers,
 
Alexander Lofft, MBA & EcoBroker
Director, Real Estate Services
 
MARTEK GLOBAL SERVICES, INC.
7920 Norfolk Avenue, Suite 920
Bethesda, Maryland 20814
Telephone: (301) 656-3700 Ext: 110
Facsimile: (301) 656-5567
 
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