|
It is critical to understand that during volatile and uncertain economic times that typical modeling and comparables do not apply. As much as our MBA training would have you believe, the market is the master and only it can decide what is next. The market is truly a combination of many factors but primarily psychologically driven by confidence or lack thereof resulting in the true factors of fear, greed, supply and demand as the final expression of value.
As in all buyers markets, supply is currently plentiful. The problem for any astute and traditional market trader or private share purchaser, where is the bottom and what price should be paid for acquisition? The answer is that only the market knows. Market based managers have a 50-50 chance of being right or wrong at any given minute. Attempting to “out guess” the market is not the GETI approach.
The seasoned management team of GETI, comprised of primarily experienced businessmen, has a different approach. Project specificity for economically necessary, preferenced or survivability products is the first screen for interest. Next, GETI believes in the creation of recurring revenue streams complimented by the securitization of investment that most traditional lending sources, such as banks would require—collateral. Often, collateralization of assets allows for capital structures that can yield volume based end users who do not have access to infrastructure type cash funding. Distribution of resulting recurring revenue streams to investors can thus dramatically reduce or eliminate traditional “J Curve” impairments.
As part and parcel to this strategy, GETI also adds additional structure to preserve asset appreciation over time through a future exit strategy less dependent on the public market place. Another ancillary benefit is the ability to have liquidity events significantly prior to the conclusion of the partnership—10 years.
Additional investor incentives can also be a byproduct of the GETI management team methods whereby they look to incorporate other potential needs and benefits to members represented by each institution. This could be in the form of project expansion and work, to outsource and support needs, to conservatory and socially responsible missions. |