OpCo-AssetCo structure
Recently got headhunted for a real assets/infrastructure private equity fund that focuses on acquiring real asset companies in an OpCo-AssetCo structure.
Could someone explain what this means please? when I asked the headhunter they didn't really know, felt like they were just reading a script.
Thanks.
(following)
separately - which HH? wondering who tends to run real asset opportunities
It just means they are buying real estate firms and separating into Operating Company (OpCo) and Asset Company (AssetCo), where the former holds the management/franchise value (and the people from the firms acquired) and the latter holds real property (just the assets, no people). I would think this would be similar to a firm operating an "Advisor" (manages the assets, earns the promotes, etc.) and a "Fund" (owns the direct assets). Externally advised REITs are similar.
The rationale for this is that you can independently finance (debt and equity) the AssetCo and create a promote structure to pay the parent (either via OpCo or direct).This also makes for easy roll-up of multiple acquisitions for eventual exit (sell-off, listing, recap, etc.).
it’s propco opco structures. assetco is another name for propco. look into what many gaming companies did when they separated the two (caesar’s an example) and explore the ongoing plan in jc penney where the same is being contemplated.
it’s propco opco structures. assetco is another name for propco. look into what many gaming companies did when they separated the two (caesar’s an example) and explore the ongoing plan in jc penney where the same is being contemplated.
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