The document discusses partnership models for sharing risks and revenues, including Guarantee Societies and Capital Partnerships. Guarantee Societies guarantee loans to members and can guarantee contracts between enterprises. Capital Partnerships allow direct investment in production or revenues through equity shares or units in a limited liability partnership (LLP). Examples provided include a film partnership and a social enterprise partnership used to develop affordable office space. The document concludes by proposing a Master Partnership or LINK Partnership as a framework for stakeholders to self-organize resources.

1. LINK Conference Partnership Finance Chris Cook , Dunblane 19th November 2009

2. Partnership-based agreements for sharing risk and revenues 20/11/09

3. Guarantee Society and Capital Partnership 20/11/09

4. Lets look first at the Guarantee Society 20/11/09

5. In 18 European countries Guarantee Societies guarantee bank loans to members Banks 20/11/09 Guarantee Society Guarantee Loan Guarantee Members

6. ...but banks are starved of capital and have cut lending 20/11/09

7. NET uses the Guarantee Society in new ways to support any enterprise 20/11/09

8. Firstly, to support procurement..... Enterprises 20/11/09 Guarantee Society Guarantee Contract Guarantee Council

9. Secondly, to provide a mutual guarantee for credit between enterprises Buyers 20/11/09 Credit Value Sellers

10. Conventionally, sellers may give buyers interest-free credit –or time to pay Buyer 20/11/09 Credit Value Seller

11. Banks act as credit intermediaries, to provide trust through implicit guarantee 20/11/09 Bank Seller Buyer

12. Guarantee Society guarantees credit from member sellers to member buyers… Buyer 20/11/09 Pool Guarantee Guarantee Seller

13. ...with a common bond : geographical, functional, or both Buyer 20/11/09 Pool Guarantee Guarantee Seller

14. Both seller and buyer pay into a Pool for the use of the Society’s Guarantee Buyer 20/11/09 Pool Guarantee Guarantee Fee Fee Seller

15. Buyer settles credit in money, or money’s worth of Value acceptable to seller Buyer 20/11/09 Pool Guarantee Guarantee Fee Fee Value Seller

16. If a buyer defaults, Pool pays seller, and collects from buyer Buyer 20/11/09 Pool Collects Pays Seller

17. A service provider sets guarantee limits, handles defaults & manages the system Buyer 20/11/09 Pool Service Provider Services Fee Fee Guarantee Guarantee Fee Seller

18. The Guarantee Society Buyer 20/11/09 Pool Service Provider Services Fee Fee Guarantee Guarantee Fee Value Credit Seller

19. Banks act as service providers not as middlemen 20/11/09

20. Capital Partnership – direct investment in production or revenues 20/11/09

21. Conventional investment is Equity in Limited Companies 20/11/09

22. ....a 19 th Century legal dinosaur 20/11/09

23. ...or Debt - loans secured by legal claims eg mortgages 20/11/09

24. ...giving two conflicting claims over the same productive asset 20/11/09

25. But there’s a new furry animal out there.... 20/11/09

26. ...the 21 st Century UK Limited Liability Partnership (LLP) 20/11/09

27. An LLP is a corporate body with limited liability.... 20/11/09

28. ...and...errrr...that’s it!... 20/11/09

29. As far as the Tax Man is concerned it is a Partnership 20/11/09

30. Capital Partnership Capital Partnership Investors Customers Custodian % % £ 20/11/09 Managers

31. Equity Shares - % age shares in revenues or production... 20/11/09

32. ...or Units - redeemable in production 20/11/09

33. Example: “The Art of Flirting” – a film incorporated as an LLP 20/11/09

34. The actors received nth’s of the gross revenues... 20/11/09

35. ...I got 5%...and the producer the rest... 20/11/09

36. ...except that we needed lights, cameras, pizza, coffee 20/11/09

37. Two Capital Partners invested £10k for 20% of revenues 20/11/09

38. ...if there are any 20/11/09

39. Art of Flirting Partnership Art of Flirting Partnership Financial Capital (Investors) Viewers Custodian % % £ 20/11/09 Human Capital (Actors, Producer, Me)

40. Everyone was on the same side 20/11/09

41. Example: Albion Trust...a charity 20/11/09

42. ..which provides affordable office space for social enterprises 20/11/09

43. ...due to demand they bought a disused church next door 20/11/09

44. ...and planned a £4m development 20/11/09

45. But if they borrow, the rents will be unaffordable 20/11/09

46. Solution? An Albion Partnership? Albion Partnership Investors Tenants Custodian % % £ 20/11/09 Managers

47. The Capital Partnership aligns stakeholder interests.... 20/11/09

48. ...but it’s not a magic bullet 20/11/09

49. Conventional finance requires binding contracts 20/11/09

50. Partnership finance requires consensual agreement 20/11/09

51. But there may be no magnetism.. 20/11/09

52. ...or partners may fall out... 20/11/09

53. A Capital Partnership is not an Organisation 20/11/09

54. ...it does not own anything, do anything, employ anyone, or contract with anyone... 20/11/09

55. ...it is simply a framework within which the stakeholders self organise ... 20/11/09

56. A Master Partnership Master Partnership Financial Capital (Money, IP etc) Users Custodians % % £ 20/11/09 Human Capital ( Developers, Operators)

57. … .is a simple new framework for sharing resources

58. Maybe a LINK Partnership? LINK Partnership Financial Capital (Assets, IP etc) Users Custodians % % £ 20/11/09 LINK Members ( Developers, Operators)

59. Thank You 20/11/09