A New Source May Fund the Next Round of Private Capex

Meetings with OTs profoundly shaped Bertie's views on investing, finance and life

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Over the years, Bertie has curated a mental list of original thinkers (OTs) in the finance world. In an industry that thrives on regurgitating second-hand wisdom, the OTs are precious. Periodically, Bertie seeks time from them for a 'no agenda' meeting; a relaxed, free-wheeling conversation where neither party is trying to impress or sell anything to the other. Looking back at these meetings, the deep impact they have had on his thinking—not just about finance and investing but life in general—is unmistakable.

Bertie caught up with one such OT last week; let's call him Ash. They went to the same red-bricked alma mater but many years apart. Ash has built a formidable financial services firm from scratch and although pushing sixty, remains as sharp and fit as ever. After talking about their respective extra-curricular pursuits, the conversation veered towards the economy and from thereon to the lack of growth in private capital spending. When probed about the reason for this, Ash had a straight answer. "Banks cannot fund private capital expenditure." That statement surprised Bertie who had been toying with the idea of buying shares in corporate lenders in anticipation of the much-awaited turn in private capex.