Resourcient is a purpose-built investment platform directly owned by its investors and management; it is lower in cost and better aligns the interests of all its stakeholders. The structure mirrors the relationship that traditional GPs have with their portfolio company investments – including differentiated stock classes, market-based employment, equity vesting, and traditional board control over budget, capitalization, and asset sales. This approach addresses significant challenges with both the current private equity model and the often-suggested “Infrastructure Bank” structures; and provides a path to better results than most institutional investors have been able to achieve through their direct investment programs.
In addition to building the right business model, the Resourcient team has conducted a multi-year process to identify a series of potential holdings that represent resilient base assets; those already producing a sound current yield, but with significant potential for higher yield and growth through the application of integrated strategic management and adoption of carefully selected technologies. These include both new development and intelligent retrofitting of existing infrastructure assets, with specific focus on infrastructure that is capable of producing stand-alone financial returns, not just from appreciation, but also from rents or other fees. Many of these projects are too small to fit the scope of larger infrastructure funds; we are working with cities and states to bundle groups of similar projects into larger project packages that make sense for Resourcient.