What would a Charity Initial Public Offering (IPO) look like?
The idea is to raise a large amount of money in order to make a sustainable and revolving investment generating charity donation for the beneficiaries as well as performance for the investor.
Sounds like a new kind of trust? It could be but we would rather take advantage of the additional value generated by an 首次公开募股 (IPO) than to rest on the Net Asset Value of a trust.
Let’s imagine a large fundraising, say USD 10 Billion through the sale of shares of common stock or through the sale of 知识产权证券, in both cases distributed within the context of an Initial Public Offering (IPO).
Now, the corporation invests the amount raised in a passive income such as real estate, in other words a recurring revenue generator in order to create a Perpetual Company.
In real estate, a typical return on equity, including leverage on low interest rates as in this period, generally results in a double digit percentage of return on investment.
One third of the performance returns to the investors, one third to private equity investments going public and the last third goes to charitable causes or philanthropy.