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Perfect description of the corporate world
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You know I love real estate… Well… Imagine hiring a property manager. Then the tenant still calls you. You chase the unpaid rent. You arrange the plumber. You check whether the repair was completed. And, at the end of the month, the property manager sends you an invoice. It’s not a joke. This happens every day with assets worth billions of dollars. Investors hire people to manage their SPVs. But the investors still have to: Chase the board papers. Coordinate the operator, contractor, lenders and advisers. Explain what the Project Agreement requires. Correct routine mistakes. Approve additional resources. Ask why the costs keep increasing. And tell the “manager” what needs to happen next. At that point, you have not outsourced management. You have simply hired more people to manage. I’ve described to you the corporate world I’ve seen in PPPs… Sorry. A good manager or an asset management team should not merely tell you that a problem exists. They should understand it. Assess the options. Make a recommendation. Act within their authority. And bring it to the Board only when a genuine decision is required. Period. Shareholders should retain control over strategy, reserved matters and material decisions. Period. That’s governance. That’s why we are developing our fixed-price approach to full SPV management. We agree on the job. We agree on the boundaries. We agree on the price. Then we manage it. Period. If the work takes longer than expected, that is our problem. If we need additional internal resources, that is our problem too. Period. If you own an operational PPP in Australia or New Zealand and this sounds uncomfortably familiar, click below. We should talk.
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Vicente Valencia
Weekly insights on how to perform when it matters | High-stakes decisions. Real situations. No BS. | 👇JOIN +2k readers 👇
Twenty years in the market. Dozens of transactions. Deep sector knowledge. Blah, blah, blah… Everyone says they are experienced… until you ask the question. “How much will it cost?” The answer: “It depends.” If you have seen this before you continue to dig in and you’ll see these answers: “We’ll charge based on time incurred.” “We can give you an estimate, but it won’t be binding.” I get it… I’ve been there. Partners. Directors. Senior managers. Managers. Analysts. Look. Everyone is...
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