A cornerstone investor is an investor who commits to invest a significant amount of money in a securitisation transaction before it is marketed to the public. Cornerstone investors are typically large institutional investors, such as pension funds or insurance companies.
Cornerstone investors play an important role in securitisation transactions. They provide the initial capital that is needed to set up the transaction and to create the securities. They also help to market the transaction to other investors and to provide liquidity to the securities once they are issued.
Here are some examples of cornerstone investors in securitisation:
- BlackRock: BlackRock is a global investment management firm that is one of the largest cornerstone investors in securitisation transactions.
- State Street Global Advisors: State Street Global Advisors is another large investment management firm that is a frequent cornerstone investor in securitisation transactions.
- Prudential Financial: Prudential Financial is an insurance company that is a frequent cornerstone investor in securitisation transactions.
Cornerstone investors typically receive certain benefits in return for their investment, such as:
- Discounts on the price of the securities: Cornerstone investors often receive discounts on the price of the securities that they purchase.
- Preemption rights: Cornerstone investors often have the right to purchase additional securities in future securitisation transactions.
- Board representation: Cornerstone investors may also be given the right to appoint representatives to the board of directors of the special purpose vehicle (SPV).