Founder of https://xitter.cf/t.co/3N7L9wzTQH - the financial communications firm.
Dallas, TX
Joined October 2021
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Why Is Everyone Investing in Texas?
A short documentary, produced by Collateral Partners
Pickens made his fortune in Texas
Want to know what’s bringing investors there today?
Watch this 15-minute breakdown:
youtube.com/watch?v=jsFfRXIL…
Working in capital formation long enough will make you realize how many people are successful in fundraising, purely because they know how to build and keep relationships rather than the quality of their investment thesis
Every mega-fund has a core team of leadership who are simply there because they know the right people and can bring in the capital
Some of them can’t underwrite a deal, haven’t touched excel in a decade, and lack proper judgement on the viability of an investment
But at the same time, the firm continues to promote them because they’re rainmakers. They have deep relationships, know the right people, and source funds nobody else on their team could
As automation dilutes the edge in many investment strategies, these traits only become more important. He who has the distribution, polish, and relationships will win
Close excel and go shake hands - your career will thank you
In 1977, Nike was a $70 million company fighting Adidas for market share.
Its culture was intense, scrappy, and built around winning.
Here’s a Nike staff memo from that year:
More on how Nike went from a $70 million challenger to a global giant:
collateral.com/blog/limits-o…
I'm excited to share our new Financial Storytelling documentary, out today:
“Why Is Everybody Investing in AI Data Centers”
13 minutes on who’s paying for the AI boom and who carries the risk.
(𝟬𝟭:𝟯𝟯) 𝗧𝗛𝗘 $𝟰𝟬 𝗕𝗜𝗟𝗟𝗜𝗢𝗡 𝗗𝗘𝗔𝗟
> BlackRock’s consortium agrees to buy Aligned Data Centers
> Microsoft, NVIDIA, and Abu Dhabi’s MGX are in the partnership
> Microsoft needs the capacity, BlackRock’s investors want the rent
(𝟬𝟯:𝟮𝟲) 𝗧𝗛𝗘 𝗖𝗔𝗡𝗔𝗗𝗜𝗔𝗡 𝗧𝗘𝗔𝗖𝗛𝗘𝗥𝗦
> Brookfield and Ontario Teachers’ pay $5.5B for Compass
> a pension fund for schoolteachers owns part of a data center in Texas
> 15-year leases help fund retirement payments for years to come
(𝟬𝟰:𝟰𝟰) 𝗪𝗛𝗔𝗧 𝗧𝗛𝗘𝗬’𝗥𝗘 𝗕𝗨𝗬𝗜𝗡𝗚
> tenant pays rent, taxes, insurance, and operating costs
> tenant also owns the chips
> chips age out? tenant replaces them, rent keeps coming
(𝟬𝟱:𝟱𝟲) 𝗧𝗛𝗘 𝗗𝗘𝗕𝗧
> $182B in new sector debt, up from $92B a year earlier
> some gets packaged into bonds and sold to more investors
> pension fund owns equity, bondholder owns debt, both wait for the same rent payment
(𝟬𝟲:𝟮𝟳) 𝗧𝗛𝗘 𝗗𝗘𝗠𝗔𝗡𝗗
> Amazon, Microsoft, Alphabet, and Meta plan roughly $700B in total capital spending in 2026
> customers have committed to over $2T in future cloud services
> roughly three-quarters of data center capacity under construction is already leased
(𝟬𝟴:𝟯𝟮) 𝗧𝗛𝗘 𝗧𝗜𝗠𝗘𝗟𝗜𝗡𝗘𝗦
> chips competitive for about 5 years
> leases run for 15, some debt for 30
> tenant pays to replace the hardware, but still needs to want the building in year 12
(𝟭𝟬:𝟭𝟵) 𝗪𝗛𝗢 𝗚𝗨𝗔𝗥𝗔𝗡𝗧𝗘𝗘𝗦 𝗧𝗛𝗘 𝗥𝗘𝗡𝗧
> Fluidstack signs multibillion-dollar leases
> Google backs billions of its obligations in exchange for equity
> the guarantees cover a defined portion, not the entire lease
Can these tenants cover the rent without another funding round?
For your next deal, get a clearer view of today’s market.
Read Collateral's flagship CRE market report:
collateral.com/insights/stat…
Deutsche Bank just released a 46-page report on private capital.
The large managers it tracks have nearly $1T in capital available to invest.
Below are the five most important charts:
AI is only the second-biggest concern for large private capital managers. See what ranks first and where they’re still investing.
Access the full report: collateral.com/socials/deuts…
