Where Technology Misses the Mark on Capital Deals

Malcolm Davies

Technology is providing more data for capital sourcing, but it is also adding a layer of complexity to deals. As a result, there is an increasing need for seasoned professionals that can analyze the data and put together complex deals. This can also make it challenging for firms to adopt new technologies. Malcolm Davies of George Smith Partners says that the firm is incorporating more technology and developing technology tools internally while simultaneously focusing on internal talent and training.

“In one sense we are getting more technologies, but in another sense, things are getting much more complicated,” Davies, a principal and managing director at George Smith Partners, tells GlobeSt.com. “There is larger traunching being done in capital stacks. You don’t just have a lender and an equity partner. You are now seeing a lender, a B piece of that lender, a mezzanine piece of the stack, maybe even a preferred piece of the stack. That is all before the common equity part of the equation. In that sense we are really well positioned in the market because as it gets more complicated, the more you are going to need a really well proficient and well-knowledged capital advisor that understands structured finance.”