A capital partnership is the means by which a group of people may collaborate to invest in a shared asset with the protection of limited liability and share in the productive capacity of that asset.
The aims are similar to those of the more recently introduced vehicle of Community Shares. It has the added advantage of being able to deliver a return on sweat equity. This means that those without the means to participate in financial investment may be rewarded on the basis of what they invest in terms of labour or professional skills.
Chris Cook, former director of the International Petroleum Exchange offers an introduction to what has now delivered many examples.
In the Forest of Dean, there is a derelict building in the village of Parkend. It is physically joined to the village hall and at risk of collapse. The property has been vacant for more than 30 years and represents a revenue drain to the local council and hence a cost to all the community.
So this is my suggestion. With the establishment of a Capital Parnership, the building may be purchased by and on behalf of the community. It has the potential of being leased, in part or in full, to a third party.
With the capital partnership established, it may then be used to create further revenue generating sustainable initiatives. For example a biomass community heating system and investment in solar energy on other local buildings and as such become an enterprise for the benefit of the community.
In the slide show below, I explore the potential for community development.