What is the Incentive for Charter Asset Management?

Hi Everyone,

I'm looking into a private equity position at CAM (https://charterassetmanagement.com/about-us), and I'm trying to figure out exactly what the financial appeal for the company is. I understand that charter schools value the liquidity that CAM provides, and that CAM collects their investment from guaranteed state-aid, but I'm trying to figure out where the money making aspect is. Does the state return their investment with interest? There is something called the NMTC (https://www.cdfifund.gov/programs-training/Progra…) which basically encourages private investment with a 40% tax deduction. Let me know if any of you know about CAM or why they chose their business model. As far as I understand, they a rent owned by any hedge fund, and only invest in charter schools so I'm confused as to how they make their money exactly. Maybe I'm just missing something simple, but any help is appreciated.

2 Comments
 

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