How CanAm’s Redeployment Platform Protects EB-5 Capital
As EB-5 investors approach the repayment phase of their initial investments, a critical decision awaits: how to redeploy those funds to maintain compliance with immigration requirements—without sacrificing capital preservation or the potential for returns. In a recent conversation, CanAm’s leadership team, including Pete Calabrese (CEO of CanAm Investor Services), John Reid (Head of Investment Origination), and Matthew Stummer (Senior Vice President of Investments), outlined how CanAm’s redeployment platform addresses this challenge with transparency, rigor, and investor-first principles.
Why Redeployment Is Required
To begin, Pete Calabrese reminded viewers of the core reason redeployment exists: “An EB-5 investment is an at-risk investment, and that investment needs to be maintained at-risk throughout the sustainment period.” Whether for pre- or post-Reform and Integrity Act (RIA) investors, this “at-risk” condition must be preserved to satisfy U.S. Citizenship and Immigration Services (USCIS) guidelines.
This means that even after the original job-creating project is complete and repaid, investors’ funds must continue to be actively invested. “Redeployment is about preserving eligibility toward your I-829 petition and, ultimately, your permanent residency,” Calabrese said. It’s not just a financial step—it’s a critical immigration milestone.
The Evolution of CanAm’s Redeployment Platform
CanAm’s experience in redeployment is unmatched in the EB-5 industry. “Our first repayment subject to redeployment was in 2020—$350 million in total,” said John Reid. But long before then, the CanAm team had spent years preparing for that moment. “We developed a platform based on three principles: meeting USCIS requirements, preserving investor capital, and fairness,” Reid explained.
A cornerstone of that fairness? Returning more than half of the investment earnings to the investor. “We want our investors to receive a market-based return, commensurate with the level of risk,” Reid said. “They’ve already spent five or more years in a project where returns were modest—we believe it’s only right to improve that going forward.”
Diversification and Diligence: A Thoughtful Approach
Rather than concentrating redeployed capital into a single project, CanAm takes a diversified approach. “Each limited partnership is reinvested into a series of different projects,” Reid noted. “This creates geographic, asset, and sponsor diversification to spread risk and preserve value.”
Matthew Stummer provided further detail on how CanAm selects those investments. “We analyze projects at both the macro and micro levels—looking at employment data, supply-demand dynamics, rent growth, and more,” he explained. CanAm’s due diligence process includes third-party valuations, market studies, and credit reviews.
Current asset classes include student housing, multifamily, industrial, and land—all chosen for their resilience amid market headwinds. “We work only with experienced sponsors who’ve demonstrated a strong track record,” Stummer added.
Structured for Suitability and Compliance
The redeployment process is guided not only by investment criteria but also by regulatory oversight. CanAm Investor Services acts as a registered broker-dealer, and CanAm Capital Management—a registered investment advisor—provides additional oversight to ensure investments are suitable from both immigration and financial standpoints.
“We’re always going to choose investments that comply with USCIS requirements,” said Calabrese. “But we also want to make sure they’re suitable investments—ones that preserve capital and create access to fair returns.”
Learn More: Project Side of EB-5
Flexible Timelines for Individual Needs
Redeployment durations are not one-size-fits-all. As Reid explained, CanAm tailors the investment horizons based on each limited partnership’s immigration timeline. “Investment timeframes generally range from two to five years,” he said. “But we evaluate each case individually and, where possible, create customized products to meet shorter redeployment periods.”
To date, CanAm has redeployed $640 million and returned $100 million to investors who’ve completed their sustainment periods—a track record that speaks to both the scale and effectiveness of the platform.
USCIS Validated, Investor-Centric
Perhaps most important is that CanAm’s approach to redeployment has already been validated by USCIS. “We’ve received permanent visa approvals where USCIS reviewed both the original job-creating investment and our redeployment strategy,” Calabrese said. “That validation reinforces the strength and compliance of our platform.”
And investor protection doesn’t end once the funds are redeployed. CanAm maintains a robust asset management and reporting system to keep investors informed. “We track each project closely and provide periodic updates,” Reid shared. “Our investor relations team is multilingual and always available to answer questions.”
Investor Consent and Transparency
Transparency is a core tenet of CanAm’s redeployment strategy. “There’s no movement of funds without investor consent,” Calabrese emphasized. “Each investor receives a detailed disclosure package outlining the redeployment option and must opt in.”
That disclosure includes information about the structure, risk profile, return potential, and term of each investment—ensuring investors have all the facts before they decide.
A Platform Built to Support Your Journey
At its core, CanAm’s redeployment platform is about enabling investors to complete their EB-5 journey with peace of mind—knowing that their capital is being preserved, their returns are being respected, and their immigration goals are still on track.
As Calabrese concluded, “There are a lot of moving parts, but we’ve built a system that’s fair, flexible, and validated. It’s designed not only to meet the letter of USCIS guidance but to uphold the spirit of what EB-5 is meant to be: a path to a better future.”
Dive Deeper Into EB-5:
- Successful EB-5 Track Record
- Risk Mitigation in EB-5: Lessons Learned and Best Practices
- The Strength of CanAm: The Critical Role of a Broker-Dealer in EB-5 Investments
