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In an interview with WatersTechnology, Mike Cavanaugh, managing partner at capital markets advisory Regiment, shared how the global pandemic impacted their business. WatersTechnology is the financial services industry’s premier provider of technology and data-related information.
“I said, ‘Hey look, we had a meeting today and it seemed like everyone was kind of fearful, with this [stay-at-home] announcement.’ So we worked through the worst-case scenario—what if we were unable to do any business? We get no clients, we are unable to create any revenue in any one of our business streams, we lose all our existing clients, and our expenses increase by 20%—what happens? How much of a runway do we have?
“We were lucky—we were fresh from a capital raise for Regiment. We calculated that we had enough cash in the coffers to last us until the end of July, a much better position than many businesses… So we didn’t need to react to the negative, and could think about how we were going to benefit from the changes in the business landscape globally.”
With that mindset, Regiment decided to fast-track their plans, even as their competitors and most businesses opted to scale down.
“The lockdown announcement was when we decided to accelerate the growth of the business—to stand up the funds and get the broker-dealer going, because we knew there was not going to be much activity… We thought it was a good opportunity to get all our ducks in a row, as we knew there would not be a lot of investment into emerging managers for a little while.”
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