Great Companies Are Built By Great People
TGE employs the Company of Company Model that was popularized by Berkshire Hathaway and has become the gold standard for successful global enterprises.
The TGE holding company’s management is also responsible for deciding where to invest the company’s money. The holding company can obtain the funds to make its investments by selling equity interests in itself or its subsidiaries or by borrowing. It can also earn revenue from payments it receives from its subsidiaries in the form of dividends, distributions, interest payments, rents, and payments for back-office functions it may provide.
The holdings supports TGE’s subsidiaries by using it’s resources to lower the cost of much-needed operating capital. Using a downstream guarantee, the parent company can make a pledge on a loan on behalf of the subsidiary. Ultimately, this can help companies obtain lower-interest-rate debt financing than they otherwise would be able to source on their own. Once backed by the financial strength of the holding company, the subsidiary company’s risk of defaulting on its debt drops considerably.