How Sovereign Wealth Creation Works
Over the next decade, upwards of 100 trillion dollars of investment will be deployed to build infrastructure assets all over the world, and hundreds of trillion dollars more will be used to support a wide array of sustainability and impact goals. This capital will either accelerate the collapse we see today, or it will ensure that the essential digital, physical and financial infrastructure assets of a community are owned by the local people. These assets will support widespread sustainable economic growth and shared prosperity, all determined and controlled locally.
It is critical to note that the Catalyst capital strategy does not need to transform hearts and minds, rely upon global institutions, build a radical new economic model or wait for government regulation in order to work.
Sovereign Wealth Creation leverages the same mechanisms that financial advisors, family offices and institutional funds rely upon every day – Confidential Investor Memorandums (CIM), Project Business Plans, Bonds and other financial instruments – to fulfill the massive need for low-risk, physical, revenue-generating assets by investment portfolios worldwide.
01
Identify local and regional needs to be met via digital, physical, and financial infrastructure assets.
02
Create CIM’s for these projects that will be invested in individually or will be put into a bond-like financial instrument to be marketed by dealer brokers to dozens of funds and financial advisors in need of low-risk investments to satisfy their fiduciary requirements.
03
Institutional investment then flows into these projects. Once they reach maturity (5-10 years depending upon the type of infrastructure project) equity investors are paid their 5-7% return, banks are paid back their loans, and the asset ownership is transferred to the local community via a revenue bond that every community can access without needing to raise a single dollar of new taxes.
04
As communities take possession of their revenue generating infrastructure assets, these assets are hooked together in a distributed fashion on the global Catalyst platform in order to support an unlimited array of collaborative practices between local and regional sovereign economies that can now, for the first time, truly grow the local economy and also participate in global markets.
05
All the millions and in some cases billions of dollars designed to exit local and regional economies via extractive infrastructure investment can now be reinvested back into these local markets in ways that support the long term resiliency and stability of the local economy.