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Provider of investment-management services, JTC PLC, has purchased NES Financial, a California-based fund administrator and a major player in EB-5. The deal is reported to be worth as much as $116 million if certain targets are met. NESF had a revenue of $13.2 million in 2019. In a global financial crisis, NES could be more valuable than ever as EB5 has proven popular during economic downturns.
As part of its mandate to bolster its U.S. Institutional Client Services, JTC Group CEO Nigel LeQuesne states of the acquisition: “With NES Financial, the JTC Group welcomes a market leader in the segments they serve and a platform that will be the foundation for our continued expansion into the U.S. market.”
NES offers EB-5 fund administration throughout the EB-5 investment life cycle: from the capital raise, to the deployment of funds, to the return of the investment. Their administration services give investors, issuers, and regulators a transparent audit trail.C.
Michael Halloran, chairman and CEO of NES Financial, believes that the current pandemic crisis means their firm’s operations will be of critical value: “The U.S. EB-5 program has historically provided a capital lifeline in downturns. As more people face sudden unemployment, the Opportunity Zones initiative and the EB-5 investor program will continue to provide jobs to distressed communities across the country.”
During the last recession, the popularity of the EB5 green card program almost tripled from FY2008 to FY2009 — with the visa tally skyrocketing from 1,443 to 4,218. It was seen as an economic stimulus tool, particularly for rural and high-unemployment areas. Today, the coronavirus has pushed EB-5 back into the headlines as there is speculation that it will once again be considered a means of promoting inexpensive capital for U.S. development and job creation.
With JTC Group acquiring NES Financial, the firm will have over 900 employees (58 being NES employees), and over $130 billion in assets managed worldwide in 19 countries.
NES will continue to operate under its brand in the U.S. The deal is expected to be finalized by the end of April.
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