Running your business News
MSPs And Private Equity: What Makes An MSP Stand Out From The Pack?
Joseph F. Kovar
‘I think cultural fit is something that is extremely important. And in terms of the technical stuff, we look from a customer perspective at what customers want. We want to see really good retention rates. We want to see a diverse customer base,’ says Briton Burge, principal at Rosewood Private Investments.
Impact Of Interest Rates On Private Equity Decisions
It is hard to pin down the impact interest rates have on private equity deals, but in general it isn’t good, Burge said.
“As debt becomes more expensive, by definition asset prices have to go down,” he said. “I don’t think that we’ve seen that in the market yet, for whatever reason. And interest rates have stayed surprisingly low. And to be completely honest with you, I don’t know exactly why. I expect that they will go up. And I think that’s going to have an impact broadly on the market.”
The good news from an MSP perspective is that the underlying business model and the underlying market are very strong and will continue to be important as time goes on, Burge said.
“Financial markets obviously have ebb and flow and might impact asset prices, but I think the fundamental underlying business is still very much in demand, very important from a customer perspective, and I think viable,” he said. “Hopefully somewhat resilient, although you can never be completely resilient to shocks.”