The key takeaways from the 4th Annual Hosting Transformation Summit from a capital markets standpoint was that financing, whether bank, mezzanine or equity, is still not as fluid as it has been in the past and may be even non-existent for companies with EBDITA of less than $20 million or $25 million a year.  Of course this is part of the reason that Fountain Partners exists (to fill gaps in the market).  Being contrarian does not matter to us per se, but being right matters a lot.  Operating performance has held up well overall in the hosting industry over the past 12 months.  We have invested throughout that period and continue to look for interesting opportunities today.  If you are solving the right problems for people, the money will find you.   Right now, “the money” (the risk capital) is in the process of figuring out which financial services firms deserve the responsibility to deploy that capital.

Tags: markets