Provide large-scale institutional capital ( pensions, sovereign wealth funds, endowments, foundations) a manageable means to address systemic risk to portfolios based on climate change and other growing systemic risks.  As the December 2016 report of Task Force on Climate-related Financial Disclosures of the Financial Stability Board ("FSB") states: "Climate-related risks and the expected transition to a lower-carbon economy affect most economic sectors and industries."

 

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Provide those same investors a more integrated approach to long-term asset management; particularly infrastructure ownership and management, that reduces risk and increases long-term returns from that infastructure. Do so through a structure that combines:

• underlying holdings of yield-producing real and energy infrastructure assets;

• active strategic management;

• active incorporation of new technologies;

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Provide a solution that eliminates the self-serving greed of the current private equity model but permits more risk-taking and shared rewards than the current direct investment model.

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Replace traditional fund structure:

• 10 year life commitment to capital and team;

• 2/20 expense load;

• no investment control;

• mark to market,

• little ability to address systemic risk,

 

with an entrepreneurial company model designed to address disruption:​

• Permanent capital but with annual budget controls;

• Evergreen, sustainable structure means access to capital when needed;

• Board-level control (budget + hiring), but delegated investment authority over individual investments;

• Owner-led Board manages hiring and firing of team; sets compensation structure and equity participation;

• Team is recruited and retained based on market-based compensation; 

• Team has equity participation but on a fully-aligned basis and only participates after owner's capital is returned;

• Long-term liquidity through IPO of organization (patient long-term capital);

• Current dividends from cash flows;​