Basically, the company we were studying develops property, then sells off part of the asset while maintaining enough of a stake to require them to manage it. So, they borrow some seed money, build, then get others to buy the risk (giving them back some of their seed money) and they make money running the place. It keeps their risk exposure low as they continue to expand. I thought it was a pretty straightforward case, with some intricate Beta and CAPM calculations.
Some of my friends in that class are European. I think they must have been shocked. Even better, the professor is Dutch (she took it with humor).
The thing is, I didn't mean to imply any negative connotation. I didn't say "A European colonial model wherein the firm gives pox-laden blankets to the locals in order to obtain resources", or "the firm enslaves the local population to strip the land bare of its mineral wealth." You borrow some money, build some ships, build a fort, then sell some other firm a stake in the fort while you continue to run the trading post. There is nothing wrong with that. Easy peasy lemon squeezy.
It does remind me though, I need to keep my trap shut.
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