Opportunities and risks in diversifying Sharron Webster – Partner, Trowers and Hamlins LLP

Bjorn Howard – Chief Executive, Aster Group

8 February 2014

Emerging

business models

and trends

Diversification – what is it?

RP1

RP2

University

Hospitals

Cost

Sharing

Vehicle

Cost sharing groups – why not share further afield?

Cost sharing group and social enterprise

Strategic partnerships

Achieving dreams – Isos and Keyfund in new

partnership ● Close to 1,000 young people across the North East are set to benefit

from an ambitious new alliance focused on developing their skills, aspirations and independence.

● North east charity Keyfund has signed up to a new strategic alliance with Isos, to engage with young people in the communities where we are most active.

● Keyfund will oversee the delivery of a programme targeted to benefit the postcode areas where Isos properties can be found across the region.

● The aim is to help young people to lead successful lives, through the four stage Keyfund programme, which sees the completion of challenges requiring planning, commitment and inspiration.

Strategic alliances and out of sector

partnerships

Community

Gateway

Association

Community

College Strategic alliance

Preston

Vocational

Centre

Commercial groups

Parent

RP

New Homes

Co

Management

Co

Private Sector

Rent Co

Lettings

agency

Social enterprise groups

Parent

Care Family and

community

support

Accessible

transport

Education

platform

Drug and

rehabilitation

Housing

Other kinds of diversification

● Private sector renting – Fizzy Living

● Market sale

● Mergers outside sector – e.g. care and education

● Joint ventures for development

● Commercial acquisitions

● New funding structures

What are the risks? What does this all mean for boards?

• Regulatory issues

• HCA’s expectations regarding risk

• Understanding new and unfamiliar business models

• Board skills and expertise

• Expertise of executives and staff

• Internal control frameworks

Aster’s Ambitions

Aster Case Study

- Strategic Alliance

- Aster Options

- Cost Sharing Vehicle

- Education Trust?

Contact

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format without the express written consent of Trowers & Hamlins LLP.

Sharron Webster

Trowers & Hamlins

Partner

d 020 7423 8479

e swebster@trowers.com

Bjorn Howard

Chief Executive

Aster Group Limited