It’s taken me 100 posts to finally get to the core of our regenerative development financial investment model that I’ve been trying to crack the code for.
My struggle has been with the extractive nature of our economic and financial systems and the risk-adjusted levels of returns that are needed from an equity perspective to secure finance for property development, and this then paired with the extractive nature of this investment into communities from outside investors
I felt that the answer had something to do with multiple recycling of investment in an ecosystem of localised bioregional development, though kept seeing the numbers compound in the favour of outside investors over time in comparison to the localised equity investment portion
Like most realisations in life though the answer was obvious, and right in front of my nose… once I saw it
The high-value external equity returns can be recycled through low-return investments designed for bioregional social and ecological system resilience to acceptable extraction levels, while localised community equity investment cycled back through property development to compound while adding security for external investor’s returns
It’s a potential model that builds respect and appreciation for both the rich and poor’s financial well-being and leverages all the different forms of capital to work together to reduce risk, build resilience, and transform communities toward a regenerative future
All sounds lovely and easy to say though will need to be proven in a pilot project where all the stakeholders are on board for the long haul. A deep commitment will be needed from all levels of the community to create a more conscious form of capital allocation and return while bringing the natural world to the table as a respected investment partner
