I talk about Personal Growth, Management, Infrastructure and More | C-Suite Executive | Mentor, Coach, Strategic Consultant | Real Estate Investor | 👇JOIN +2k readers 👇
From Attic Office to PPP Empire
|
It was 1952. An attic in Madrid. Wooden desk. Paper maps. A father building roads. In a country devastated by civil war, world word and embargos. ​ In 2000, the son takes over. Civil engineer. MBA from MIT. Fluent in risk, cash flow… and opportunity. He gave me a scholarship. I liked the guy. ​ The Pivot came immediately. Keep building roads? No. Buy. Operate. Hold. Not “jobs.” Concessions… or Concesiones, as we call in Spanish PPPs most of the times. ​ 407 ETR in Canada — 99 years of tolls. A masterclass in long-term risk management, luck, vision… Airports in Sydney, Heathrow, Gatwick. Highways in Spain, Texas, Australia. The kind of assets that send investors to bed smiling. Have you heard the story of Warren Buffet when bought the company that fabricated the razors Gillette? Same thing… you wake up smiling about the billions of men having to shave their bears… or pick up their cars or flights… Every single day. ​ The System Stick to concessions If it’s not a PPP or long-term contract, pass. ​ Hunt for duration The longer the term, the fatter the margins. While for others, 25 years is the limit… for them… is the bare minimum. ​ Own the risk — then price it Public sector wants you to take the risk? Sure. But it’ll cost them. ​ Go global, but only where the rules work From Spain to Canada, Poland to the US. It’s what I say of clear rules and regulations… ​ The Result From attic office to PPP multinational in 20+ countries. Billions under management. Governments queuing up to call. ​ Lesson: Some people win projects. Others win systems. Ferrovial built a system that prints money for decades — and Rafael del Pino made sure no one else got a copy. Well… or almost nobody. A few things that these guys would have loved to know about PPPs are below. ​
​
​ PD 1: If you liked this email, don't keep it in secret and forward it to a friend. They will thank you enormously one day. PD 2: If somebody has sent you this email and you want to receive emails like this yourself, visit vicentevalencia.com PD 3: If you want unsubscribe, click the link below. ​ ​ |
Vicente Valencia
I talk about Personal Growth, Management, Infrastructure and More | C-Suite Executive | Mentor, Coach, Strategic Consultant | Real Estate Investor | 👇JOIN +2k readers 👇
Boardroom. On one side: Equity – polished, confident, smelling of bonus.On the other: Client – nervous, stiff, with a dozen consultants whispering in their ear. In the corner: CJV (construction JV) – trying not to scream. In the other corner, one guys… the maintainer. The topic? Lightbulbs. Yes, lightbulbs. The client says:“We need all lighting to last 50 years. No exceptions. It’s in the contract.” The equity guy raises an eyebrow. “50 years? That’s longer than some governments last… even in...
A few days ago, I wrote a post in LinkedIn. You know. Usual stuff. Criticizing something that… let’s say… could be better. End result… of the project, I mean, was public bailout. Of course, bonuses did not need to be handed back. Of course, not. End result… of the post, I mean, is that I was oversimplifying. That the project was not bankable in the first place. That they needed warranties to make it bankable. The silence of the cricks when you ask… why didn’t you explain how to make it...
If you don't know Alex Hormozi, you should look for him... he is everywhere. If you want to sell something, you should read his books. If you want to get inspired, you should read how he started from broke to something. Yesterday I saw one of this posts... it was so powerful, that I wanted to share it with you: Instead of trying to get rich. Do this. Try not being poor. This is what poor people do:1. Start many projects, finish none. 2. Think that understanding the basics and doing the basics...