This document proposes a new model of capital partnership as an alternative to traditional equity and debt. The capital partnership model involves productive assets like land or property being held by a custodian, with investors providing financial capital and managers providing human capital. Users pay rent or fees for using the assets. The rents are used to pay returns to investors and managers. This model transforms debt into tradable stock units backed by the productive assets, reducing funding costs. It creates a new secure and liquid asset class for investors while also enabling affordable access to assets for users.
17. Embryonic Capital Partnership 2002 (> £1bn)
Gross Revenues
Capital Partnership LLP
10 UK Hotels
% %
Hilton Group Consortium LLP
Capital User Capital Provider
% % %
Property Hotel
Bank
Developer Specialist