The economics workbench
Inversion economics
What changes when systems do more of the routine work?
Bottom-up annual model Same service scope
1 assumption to validate
- Faster review is assumed, not proven. Validate review quality and deadline capacity before underwriting the time saving.
All-in cost advantage
Modeled incumbent annual total cost ÷ Infra One annual total cost. Includes all payroll and modeled non-payroll overhead. A result below 1× means no advantage.
1.95×
48.8% lower operating cost
Cost per fund
Infra One’s annual all-in operating cost ÷ comparable fund-years. Both firms serve the same portfolio.
€27.2k
vs €53.2k incumbent
Operating margin
Revenue less all modeled operating cost, divided by revenue. Excludes tax, financing, D&A, transition cost and working-capital timing.
62.2%
vs 33.5% incumbent
Revenue / human FTE
Revenue ÷ all human FTE, including engineers and corporate staff. Not pure productivity: price and service scope matter.
€272.7k
2.16× modeled incumbent
The economics of inversion
Annual operating cost · same fund portfolio
Modeled annual cost savings€13m
Less routine labor.
Review and human accountability remain.
Production peopleReview & client peopleSystems & softwareEngineeringCorporate & overhead
Incumbent€26.6m
Infra One€13.6m
48.8% cost reduction
Annual P&L
EUR · management-model view, not reported accounts
Direct delivery margin is a management proxy, not GAAP gross margin. Operating profit includes engineering and corporate payroll. Financing, taxes, D&A, transition costs and working capital are excluded.
| Annual economics | Incumbent | Infra One |
|---|---|---|
| Revenue | €40,000,000 | €36,000,000 |
| Fee per fund | €80,000 | €72,000 |
| Production people | €13,195,000 | €3,445,000 |
| Qualified review | €4,620,000 | €3,640,000 |
| Client service | €1,680,000 | €1,680,000 |
| System execution | €28,800 | €115,200 |
| Delivery software | €750,000 | €400,000 |
| Direct delivery cost | €20,273,800 | €9,280,200 |
| Delivery margin (proxy) | 49.3% | 74.2% |
| Engineering payroll | €700,000 | €1,400,000 |
| Corporate payroll | €4,770,000 | €1,620,000 |
| Fixed non-payroll | €500,000 | €750,000 |
| Jurisdiction overhead | €360,000 | €360,000 |
| Academy & rule-building | €0 | €200,000 |
| All-in operating cost | €26,603,800 | €13,610,200 |
| Operating profit | €13,396,200 | €22,389,800 |
| Operating margin | 33.5% | 62.2% |
Price discount reduces Infra One revenue by €4m. Cost savings are not the same as profit improvement.
The human team
Whole paid FTE · every role included
| Role & responsibility | Incumbent | Infra One |
|---|---|---|
| ProductionRoutine, exceptions & handoffs | 203 | 53 |
| Qualified reviewersPeak capacity & local coverage | 33 | 26 |
| Client serviceRetained human relationships | 21 | 21 |
| EngineeringBuild, maintain & operate | 7 | 14 |
| CorporateManagement, sales & support | 53 | 18 |
| Total human FTE | 317 | 132 |
All roles rounded up. Agents are not employees. Contractors belong in human FTE equivalents when actual data is used.