2. I hear a lot of conversations about how much money is
being taken out of the public markets and being placed
into private equity as a positive benchmark for the EMD
space. The question we haven’t asked is: how much of
that money is actually being invested into Exempt Market
products which are being sold on the shelves of EMDs
across Canada? It’s not a rhetorical question, but the
answer is likely less than 5%. This is a massive opportunity
for growth, and we should be asking – Why so little?
3. We need more, dare I say, FRANK conversations on not only
how we strengthen this business but how we dramatically
expand this business. Going back to my first answer, I believe
that one of the bell weathers of the EMD space becoming a
mature industry, which, by default serves all stakeholders –
and most importantly, investors – is collaboration. We need to
have dealerships transparently collaborating with one another
and actually doing business through co-syndication structures
and sharing best practices from the top down. Today, as far as
I’m aware, this is either not happening on an absolute basis or
collaboration is certainly negligible, and that’s a big problem.
What are the benefits of being a member of the Private Capital
Markets Association of Canada?
We made the determination to get more directly involved
in the PCMA and its advocacy. We believe that you have to be
involved in the system and be critical of it if you want to improve it.
I think that there are some great people who are involved in the
EMD space who are trying to advance the benefits of private equity
and the dealership model. What is needed is not just a lobbying
group, but a critical eye to make things better; to critique “business
as usual”. Every company, organization and even community groups
understand that if you are going to scale and be sustainable, one
needs to continually look at the existing assumptions with an eye for
ways of constantly improving all aspects of the business, regardless
of how well we perceive it to be going.
Become PCMA Member today and make a statement that you
are committed to your profession and highest standards of
business conduct. Join now at www.pcmacanada.com
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