ASSET MONETIZATION
Perhaps the most challenging of activities is the monetization of illiquid assets. Among these are “above-ground assets” and “in-ground assets.”
Above ground assets are things like gold, diamonds, gemstones, and works of art. These are things that people agree have significant monetary value but often cannot be easily turned into cash and certainly not quickly without losing a significant portion of the value. When an asset of this type can be monetized, it then becomes the basis for PPP without losing control or the value of the asset. This makes sense in particular when the asset is a treasured work of art. Most people who cherish such an asset never consider the possibility that it might generate the capital to put people to work in good paying jobs just by providing funding for a development project or a humanitarian project.
Here’s a priority list of above ground assets in terms of ease of monetization.
- cash
- gold bullion
- diamonds
- uncut diamonds
- gemstones
- uncut gemstones
- works of art
In ground assets are things like gold mines, diamond mines, oil & gas fields, and almost any other valuable mineral resource. In order to monetize these assets an investor must often be incentivized by promises of equity, or revenue sharing. Generally our tasks are facilitating a meeting of minds and developing a joint venture agreement. Some monetization in this category may require that a mine be developed and worked. Others might not require the mine to become operational at all. Just as in the case of the above ground asset, the possibility is that funds derived from monetization could be utilized to create jobs and fund much needed humanitarian work.
