Survey Finds Widespread Optimism Among Capital Providers, Advisors

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A Capital One survey of investors, capital providers and advisors found that 96 percent of respondents believe economic conditions are “better” or “the same” as last year, signaling widespread optimism and opportunities among professionals.

Capital One surveyed professionals across private equity and mezzanine firms as well as consulting, professional services and middle market businesses at the Texas ACG Capital Connection 2017 conference for their views on business and financial conditions for the next 12 months.

Respondents were also positive about expectations for their company’s performance in the next 12 months, with 63 percent reporting they expect better performance and 20 percent saying they think it will remain steady.

In addition, ninety percent of respondents said that borrowing conditions are better or the same as last year. When asked about the qualities that are most important to them when considering a financial partner, over half (56 percent) of respondents said a strong, long-term relationship, followed by creativity of debt financing (29 percent).

“It’s encouraging to see that optimism around economic and business conditions is translating to positivity around borrowing,” said Bob McCarrick, Head of the Commercial & Industrial Banking group at Capital One. “As business look to expand and begin to explore their borrowing options, it’s clear that both strong relationships and creative financing options play major roles.”

When asked to name the biggest challenge facing their business over the coming 12 months, nearly half (44 percent) of respondents said a shortage in talent and skills, followed by changing regulatory requirements (30 percent) and rising interest rates (14 percent).

“While businesses expect to face numerous challenges over the next twelve months, access to capital will at least enable them to have the resources available to address these issues head-on,” McCarrick added.

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