Business isn't all bad

You’d think another recession is already here, despite growing ADP payroll numbers, incredibly firm business hotel rates and bookings in places like Boston and Miami, and a strong month of domestic car sales across the board. We’ll issue at least two term sheets this week, and that’s another sign of positive activity in our books. In the debt world, it’s one thing to have a firm approach your fund for capital, but it speaks to the strength of the financials, business, and visibility on the forecast to issue a financing term sheet.

There are times when we are asked about the wisdom of the sectors we lend to. Prospective LPs, in particular, sometimes wonder about the riskiness of the Innovation Economy, which is natural in a world where large banks keep any individual sectoral concentration below 10%. If I may, I’d direct you to yesterday’s FOMC minutes from the Federal Reserve Board:

“economic growth so far this year has been considerably slower than the Committee had expected…[but] business investment in equipment and software continues to expand.”

Enough said.

MRM