I’m Going Where the Money Is Not quite the G20, but in the hosting industry its as close as we get. I am on my way to Tier1 Hosting Cloud Transformation Summit. As a merchant banking guy money is the Valentino Shoes Outlet mother milk, the lifeblood of transactions. Without it in some form or fashion deals just don get done. As a prep here is how I see the world today, plus a bit about the Summit.
As a starting point the Transformation Summit is primarily a financial event. People actually dutifully sit through sessions, serious. Sessions like How to Get Bought (And Other Financial Frolicking The second function Cheap Valentino Sneakers is some serious connecting.
But first a bit about financing. Any rocket scientist will tell you that despite the Fed printing pallets of money, new money is hard to find. With the prime rate at 3.5% you should (in a real world) be able to borrow a couple points over prime yes you should be able to be in at 5.5%. Wishful hoping. Try getting a 5.5% two years interest only with a five or seven year balloon, add with leverage wish. I did. But todays high growth companies, firms with cash, the hosting and data center industry just don meet those standards. It is 2011.
Enter Private Equity. This year I have Valentino Sandals been stressing PE. How it is affecting our industry. Firms looking at better than passbook at the neighborhood S Yes those 20% plus returns, which is why the PE sector is flocking to Las Vegas, looking for love and the right marriage partner. I surveyed the over 600 attendees, a WHO of Private Equity will be in attendance. They are on a field trip to determine if this industry is a great place to invest. Yes it is.
On a side note some mezzanine financing groups have been contacting me. They are currently hurting as they like to play after senior debt is in place. Sort of filling out Valentino Shoes the second mortgage on a home. Without a first how can you have a second? Guess what some are still willing to fill in gap. Why be second when you can be first at a much higher rate?