cross border innovation - master partnerships
TRANSCRIPT
Cross Border Innovation
Innonet Conference: Breakout Session 4
Chris Cook , Copenhagen
7th May 2009
Introducing the Master Partnership
Hanseatic Microfinance Initiative created two partnership tools
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Guarantee Society – sharing risk of non performance
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Capital Partnership – sharing production & revenues
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Guarantee Society
Sellers BuyersBuyers
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Pool
ServiceProviderServiceProvider
Services Fee
Fee
Guarantee Guarantee
Fee
Value
Credit
Seller’s performance and buyer’s credit supported by a mutual guarantee....
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...backed by provisions into a default pool and managed eg by banks
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Guarantee Society
Sellers BuyersBuyers
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Pool
ServiceProviderServiceProvider
Services Fee
Fee
Guarantee Guarantee
Fee
Value
Credit
Potential for networked cross-border Credit Clearing Union
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Capital Partnership
Capital PartnershipCapital Partnership
InvestorsInvestors
CustomersCustomers
Managers
CustodianCustodian
% %
£
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Conventional investment is “Equity” in Limited Companies
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....a 19th Century legal dinosaur
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...or “Debt” - loans secured by legal claims eg mortgages
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...two conflicting claims over the same productive asset
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But there’s a new furry animal out there....
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...the 21st Century UK Limited Liability Partnership (LLP)
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An LLP is a corporate body with limited liability....
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...and...errrr...that’s it!...
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As far as the Tax Man is concerned it is a Partnership
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It’s an “Open” Corporate enabling partnership working...
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... even without a written agreement
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Capital Partnership – direct ‘Peer to Peer’ investment in productive assets
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Capital Partnership
Capital PartnershipCapital Partnership
InvestorsInvestors
CustomersCustomers
Managers
CustodianCustodian
% %
£
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“Equity Shares” - % age shares in revenues or production...
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...or Units - redeemable in production
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Example: “The Art of Flirting” – a film incorporated as an LLP
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The actors received “nth’s” of the gross revenues...
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...I got 5%...and the producer the rest...
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...except that we needed lights, cameras, pizza, coffee......
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Two Capital Partners invested £10k for 20% of revenues....
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...if there are any
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Art of Flirting LLP
Art of Flirting PartnershipArt of Flirting Partnership
Financial Capital(Investors)
Financial Capital(Investors)
ViewersViewers
Human Capital(Actors, Producer, Me)
CustodianCustodian
% %
£
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Everyone was on the same side
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The Capital Partnership aligns stakeholder interests....
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...but it’s not a magic bullet
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...there may be limited agreement or conflicting expectations....
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...and partners may not see eye to eye
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Capital Partnerships and Guarantee Societies are not Organisations...
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...they do not own anything, do anything, employ anyone, or contract with anyone...
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They are simply frameworks within which stakeholders self organise....
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Hanseatic Master Partnership
Master Partnership
Master Partnership
Financial Capital(Money, IP etc)
Financial Capital(Money, IP etc)
UsersUsers
Human Capital(Developers, Operators)
Custodians(National)
Custodians(National)
% %
€
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….is a simple new framework for innovative cross border development
‘Public’ = State and ‘Private’ = Corporation problems can be addressed in a new way...
....transcending borders through networked two way “contrats de societé”....
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...rather than national or international institutions and hierarchical
structures...
...and one way contractual relationships – adversarial “contrats de mandat”
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Hanseatic Master Partnership
Master Partnership
Master Partnership
Financial Capital(Money, IP etc)
Financial Capital(Money, IP etc)
UsersUsers
Human Capital(Developers, Operators)
Custodians(National)
Custodians(National)
% %
€
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Thank You
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