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Galts Gulch Initiative (Main) 3.8.12
 

Galts Gulch Initiative (Main) 3.8.12

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Bringing the Asset Management Industry to Denver

Bringing the Asset Management Industry to Denver

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    Galts Gulch Initiative (Main) 3.8.12 Galts Gulch Initiative (Main) 3.8.12 Presentation Transcript

    • GALT’S GULCH INITIATIVEBRING THE ASSET MANAGEMENT INDUSTRY TO DENVER MAIN 1 March 2012
    • GALT’S GULCH REFERENDUMTABLE OF CONTENTS INTRODUCTION THESIS 3 HIGHLIGHTS WHY DENVER WHAT’S AN ASSET MANAGEMENT INDUSTRY 4 INDUSTRY OVERVIEW ASSET MANAGEMENT 5 DENVER, COLORADO COLORADO’S ALLIANCES 6 COLORADO’S ALLIANCES [CONTINUED] 7 REPRESENTATIVE INVESTMENT FIRMS AUM 8 HYPOTHETICAL GOAL: $5 TRILLION AUM 9 THE GAME IS AUM… 10 WHAT ATTRACTS ASSET MANAGERS TO COLORADO? 11 WHAT ELSE ATTRACTS ASSET MANAGERS TO COLORADO? 12 ROCKY MOUNTAIN STATISTICS I 13 ROCKY MOUNTAIN STATISTICS II 14 ROCKY MOUNTAIN STATISTICS III 15 NATIONAL & GLOBAL ACCESS 16 CASE STUDIES HEDGE FUND INDUSTRY 17 VENTURE CAPITAL 18 STATE & VC ALLIANCE 19 WHAT LURES ASSET MANAGEMENT FIRMS? 20 SUMMARY WALL STREET OF THE WEST 21 2 WHO IS JOHN GALT? 22 APPENDIX STATE ADVISORY MEMBERS & CONTACT INFORMATION 23
    • INTRODUCTION THESIS “Colorado has an Asset Management backbone that if nurtured, can be beneficiary of the vast new wealth, jobs, resources & intellectual capital over the next two decades.” 3THESIS HIGHLIGHTS INDUSTRY OVERVIEW DENVER, COLORADO CASE STUDIES SUMMARY APPENDIX
    • HIGHLIGHTS WHY DENVER WANTS THE ASSET MANAGEMENT INDUSTRY COLORADO GROSS STATE PRODUCT: $252 BN  High Income Jobs  Use of existing real state, technology & infrastructure  Excellent established support [administration, accounting & legal]  Trickle‐down economy  Tax revenue 4THESIS HIGHLIGHTS INDUSTRY OVERVIEW DENVER, COLORADO CASE STUDIES SUMMARY APPENDIX
    • INDUSTRY OVERVIEW ASSET MANAGEMENT THE ASSET MANAGEMENT INDUSTRY IS THE PROFESSIONAL INDUSTRY THAT MANAGES OTHER PEOPLE’S MONEY. Clients include pension funds, institutions, HNW & retail clients. Types of investable Markets Managers Invest Equities, Fixed Income, Foreign Exchange, Energy, Precious Metals, Agriculture… Teams, idea sourcing, portfolio construction, risk management, operations, sales & distribution 5THESIS HIGHLIGHTS I N D U S T RY O V E RV I E W DENVER, COLORADO CASE STUDIES SUMMARY APPENDIX
    • DENVER, COLORADO COLORADO ALLIANCESCURRENT STUDENT MARKET POPULATION METRO DENVER = 60 K MUTUAL FUNDS LONG ONLY TRADITIONAL HEDGE FUNDS Technologies PRIVATE EQUITY FUNDS EXCHANGE TRADED FUNDS VENTURE CAPITAL FUNDS Support Industries REAL ESTATE FIRMS Infrastructure FINANCE FIRMS 6THESIS HIGHLIGHTS INDUSTRY OVERVIEW DENVER, COLORADO CASE STUDIES SUMMARY APPENDIX
    • DENVER, COLORADO COLORADO ALLIANCES [CONTINUED] UNIVERSITY OF COLORADO Undergraduate Engineering Programs 32nd overall & 18th among public engineering programs nationwide [Americas Best Colleges 2011] UNIVERSITY OF COLORADO Leeds School of Business U.S. News & World Report ranked the undergraduate business program 22nd among national public universities in 2010. UNIVERSITY OF COLORADO DENVER CU Denver Global Study in China: Econ students have the opportunity to study & live in Beijing, China. UNIVERSITY OF DENVER Daniel’s School of Business Daniels students get hands‐on, highly relevant business experience through simulations, practicum projects & international trips. As a result, Daniels ranks as one of the top business schools in the nation according to BusinessWeek, U.S. News & World Report, the Financial Times. COLORADO COLLEGE Celebrated as the most prestigious Colorado school, Colorado College provides various specializations within an economics degree; including international business & mathematical economics. COLORADO SCHOOL OF MINES Colorado School of Mines is the top‐ranked public university in the nation for starting salaries of graduates with bachelor’s degrees . Colorado School of Mines focuses on engineering & geosciences. 7THESIS HIGHLIGHTS INDUSTRY OVERVIEW DENVER, COLORADO CASE STUDIES SUMMARY APPENDIX
    • DENVER, COLORADO REPRESENTATIVE INVESTMENT FIRMS AUM COLORADO AUM = 822 Bn GOAL $5 TRILLION BANK HOLDING CREDIT INVESTMENT MANAGERS & COMPANIES UNIONS FINANCIAL PLANNERS First Bank Holding Co. $10,518,766 Bellco Credit Union $1,912,999,423 Denver Investments $8,989,300,000 CoBiz Financial $2,344,123 Westerra Credit Union $1,175,882,855 Cambiar Investments LLC $5,776,400,000 Sturm Financial Group Inc. $1,895,802 Public Service Credit Union $1,038,180,228 First Western Trust Bank $4,200,000,000 Guaranty Bancorp $1,867,735 Elevations Credit Union $970,641,113 Innovest Port. Solutions $3,800,000,000 Community Bank Shares Inc. $1,655,328 Credit Union of Colorado $945,533,080 AMG National Trust Bank $2,782,700,000 Total Top 5 $18,281,754 Total Top 5 $6,043,236,699 Total Top 5 $25,548,400,000 Total $26,800,471 Total $9,402,384,599 Total $39,046,300,000 MUTUAL FUND TRUST VENTURE CAPITAL & COMPANIES ORGANIZATIONS PRIVATE EQUITY FIRMS OppenheimerFunds Inc. * $164,163,000,000 Wells Fargo Bank * $27,073,000,000 Vestar Capital Partners $7,000,000,000 Janus Capital Management $101,770,000,000 Trust Co. of America $10,534,600,000 Resource Capital Funds $3,200,000,000 Marsico Capital Management $40,000,000,000 Colorado State Ban & Trust $3,300,400,000 KRG Capital Partners $2,800,000,000 Denver Investment Advisors $3,305,000,000 BNY Mellon Corp. Trust * $3,199,200,000 Excellere Partners $730,000,000 Cambiar Investors $2,570,000,000 AMG National Trust Bank $2,772,800,000 Meritage Funds $600,000,000 Total Top 5 $281,130,000,000 Total Top 5 $46,880,000,000 Total Top 5 $14,330,000,000 Total $288,991,000,000 Total $54,312,700,000 Total $16,229,200,000 * Represents Firms Headquarters are not located here ** Assets under administration: ALPS (300 bn) – Spicer Jeffries (‐) – Matrix (114 bn) 8THESIS HIGHLIGHTS INDUSTRY OVERVIEW DENVER, COLORADO CASE STUDIES SUMMARY APPENDIX
    • DENVER, COLORADO HYPOTHETICAL GOAL: $5 TRILLION AUM MANAGEMENT % AUM $5 TRILLION 1.65 TRILLION MUTUAL FUNDS 33% 1 TRILLION HEDGE FUNDS 20% 1 TRILLION PRIVATE EQUITY 20% VENTURE CAPITAL 13% 650 BILLION REAL ESTATE 13% 650 BILLION ETF FIRMS ‐ ‐ TOTAL 100% 5 TRILLION TAX RATE 4.63% 231.5 BN The asset management industry charges by assets under Management; the industry varies from 5bps – 300 bps 9THESIS HIGHLIGHTS INDUSTRY OVERVIEW DENVER, COLORADO CASE STUDIES SUMMARY APPENDIX
    • DENVER, COLORADO THE GAME IS AUM POTENTIAL INDUSTRY EARNINGS The asset management industry charges by assets under management. The industry varies from 5bp to 300 bps. FEE 500M 5B 50B 500B MGMT 500M [PER 1MM] 5 TRILL [PER 1MM] [CONS] [PER 1K] [PER 1K] [PER 1MM] [PER 1MM] ADMIN 0.05% $2,500 $25,000 $250 $2500 $2.5 $25,000 MUTUAL FUNDS 1.00% $5,000 $50,000 $500 $5000 $5.0 $50,000 LONG ONLY 0.75% $3,750 $37,500 $ 375 $3750 $3.75 $37,500 HEDGE FUNDS 1.50% $7,500 $75,000 $750 $7500 $ 7.5 $75,000 PRIVATE EQ 2.00% $10,000 $100,000 $1,000 $10000 $10.0 $100,000 VENTURE CAP 2.00% $10,000 $100,000 $1,000 $10000 $10.0 $100,000 REAL ESTATE 2.00% $10,000 $100,000 $1,000 $10000 $10.0 $100,000 ETF FIRMS ‐ ‐ ‐ ‐ ‐ ‐ ‐ TOTAL $48,750 $487,500 $4,875 $48,750 $48.75 $487,500 TAX RATE 4.63% 2,257.125 22,571.25 2,257.125 22,571.25 2.257125 22,571.25 BEST CASE: At $1 Trillion AUM = Revenue $500 M at 5 bps to $10 Bn at 200 bps At $5 Trillion AUM = Revenue $2.5 Bn at 5 bps to $100 Bn at 200 bps 10THESIS HIGHLIGHTS INDUSTRY OVERVIEW DENVER, COLORADO CASE STUDIES SUMMARY APPENDIX
    • DENVER, COLORADO WHAT ATTRACTS ASSET MANAGERS TO COLORADO? BUSINESS CLIMATE • CO has the eighth best small business climate in the nation, [Small Business & Entrepreneurship Council] “Small Business Survival Index” considers government spending, individual & corporate tax rates, healthcare costs, & regulatory burden • CO earned top‐15 scores on the criteria for state & local excise taxes & taxes on capital gains & corporate income. [Small Business & Entrepreneurship Council, 2010] REAL ESTATE & THE COST OF DOING BUSINESS • Metro Denver office occupancy costs in the Central Business District averaged $24.65/Ft₂. [CB Richard Ellis, Global Office Rents, Nov. 2010] The $14 registration fee for brokers & dealer representatives in CO, is one of the lowest in the nation. [State of CO, Division of Securities] TAX STRUCTURE • Colorado offers a simple corporate income tax structure based on single‐factor apportionment, which allows companies to pay taxes based solely on their sales in the state. • Colorados corporate income tax rate of 4.63 % is one of the lowest & most competitive tax structures in the nation INSURANCE ARBITRAGE • Colorados general Insurance Premium Tax is lower than taxes in 16 other states • The states Insurance Premium Tax is generally 2%, but businesses with a home or regional office in Colorado are only taxed 1%. [National Association of Insurance Commissioners, 2009] AN ATTRACTIVE & VIABLE CANDIDATE TO AM FIRMS 11THESIS HIGHLIGHTS INDUSTRY OVERVIEW DENVER, COLORADO CASE STUDIES SUMMARY APPENDIX
    • DENVER, COLORADO WHAT ELSE ATTRACTS ASSET MANAGERS TO COLORADO? The Quality of Life… 12THESIS HIGHLIGHTS INDUSTRY OVERVIEW DENVER, COLORADO CASE STUDIES SUMMARY APPENDIX
    • DENVER, COLORADO ROCKY MOUNTAIN STATISTICS I Real GDP by Industry, Colorado vs. The national Economy (1% of nominal GDP) 13THESIS HIGHLIGHTS INDUSTRY OVERVIEW DENVER, COLORADO CASE STUDIES SUMMARY APPENDIX
    • DENVER, COLORADO ROCKY MOUNTAIN STATISTICS II Colorado Gross State Product: $252 Billion GSP GSP GSP GSP CITIES FORBES LAND DENSITY CHANGE % POP[#] [PRIVATE] [GOVT.] [TOTAL] [CAPITA] [100K+] [RICHEST] [SQ MILES] [PPL/SQ MI] [PAST 10 YRS] ARIZONA 6,595,778 219,668 34,431 254,099 $38,524 9 5 113,635 58.04 28.6% COLORADO 5,024,748 220,572 32,086 252,658 $50,282 11 6 104,094 48.27 16.8% IDAHO 1,545,801 46,039 7,967 54,006 $34,937 1 1 83,570 18.50 19.5% MONTANA 974,989 30,028 5,926 35,954 $36,876 1 4 147,042 6.63 8.10% NEVADA 2,643,085 112,573 13,930 126,503 $47,861 8 8 110,561 23.91 32.3% N. MEXICO 2,009,671 59,379 15,423 74,802 $37,221 1 0 121,589 16.53 10.50% UTAH 2,784,572 97,049 15,893 112,942 $40,559 4 0 84,899 32.80 24.70% WYOMING 544,270 32,511 5,033 37,544 $68,980 0 4 97,814 5.56 10.20% RM INDEX 22,122,914 817,819 130,689 948,508 $42,874 35 28 863,204 25.63 18.8% 14THESIS HIGHLIGHTS INDUSTRY OVERVIEW DENVER, COLORADO CASE STUDIES SUMMARY APPENDIX
    • DENVER, COLORADO ROCKY MOUNTAIN STATISTICS III Rocky Mountain Index Vs. S&P CO Financials =23% = 8% AM+ 15% RE TOTAL % GDP 27% 27% 6% 4% 14% 7% 12% 4% 100% SECTOR ALLOCATION % ARIZONA COLORADO IDAHO MONTANA NEVADA N. MEXICO UTAH WYOMING RM INDEX S&P500 MSCI EAFE MSCI EM INFO. TECHNOLOGY 1% 3% 1% 1% 1% 1% 2% 1% 1.7% 18% 6% 13% FINANCIALS 28% 23% 21% 21% 26% 20% 26% 12% 24.4% 16% 25% 25% HEALTHCARE 9% 7% 9% 11% 6% 9% 7% 4% 7.7% 12% 9% 1% CONSUMER STAPLES 4% 3% 3% 4% 15% 4% 3% 3% 5.2% 11% 10% 7% ENERGY 2% 11% 2% 6% 4% 8% 3% 39% 14.2% 11% 7% 14% INDUSTRIALS 23% 15% 28% 25% 24% 27% 23% 18% 14.9% 11% 12% 7% CONSUMERDISCRETIONARY 16% 14% 17% 16% 14% 14% 14% 11% 14.4% 10% 10% 7% UTILITIES 3% 2% 2% 4% 2% 2% 2% 3% 2.1% 4% 5% 4% MATERIALS 9% 8% 12% 7% 5% 7% 13% 7% 8.5% 4% 10% 14% TELECOMMUNICATIONS 2% 8% 1.5% 2.0% 1.4% 2.4% 1.7% 1% 3.2% 3% 6% 8% OTHER 4% 4% 4% 4% 3% 4% 5% 2% 3.7% TOTAL 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% FINANCIAL SECTOR INCLUDING FINANCIAL SERVICES AND REAL ESTATE [BREAKOUT PER STATE] FINANCIALS + INSURANCE & REAL ESTATE ARIZONA COLORADO IDAHO MONTANA NEVADA N. MEXICO UTAH WYOMING FED RESERVE BANKS, CREDIT INTERM. & RELATED 10% 8% 6.3% 6.6% 10.7% 5.1% 11.7% 2.9% SERVICES SECURITIES, COMMODITY CONTRACTS, INVESTMENTS INSURANCE CARRIERS & RELATED ACTIVITIES FUNDS, TRUSTS, & OTHER FINANCIAL VEHICLES REAL ESTATE, RENTALS & LEASING 18.0% 15% 15.0% 14.6% 15.4% 15.0% 14.5% 9.6% RENTAL & LEASE SER. & LESSORS OF INTANGIBLE ASSETS TOTAL 28% 23% 21% 21% 26% 20% 26% 12% 15THESIS HIGHLIGHTS INDUSTRY OVERVIEW DENVER, COLORADO CASE STUDIES SUMMARY APPENDIX
    • DENVER, COLORADO NATIONAL & GLOBAL ACCESS NATIONAL ACCESS INTERNATIONAL ACCESS Boston 4hrs Beijing 13hrs New York 3.5hrs Berlin 10hrs Chicago 2hrs Dubai 15.5hrs Dallas 2hrs Johannesburg 19hrs Los Angeles 2.5hrs London 9.5hrs San Francisco 3hrs Madrid 10hrs Washington DC 3.5hrs Moscow 11hrs Seattle 3hrs New York 3hrs Miami 4hrs Rome 11hrs Sao Paulo 11.5hrs Vienna 12hrs A central location and easy global access •Real‐time connections to six of seven Continents in one business day. (Metro Denver Economic Development Corp.) •Convenient access as air travelers can easily reach two‐thirds of the nation within two hours, and every North American city with a pop. of 1 million or more within four hours. (Metro Denver Economic Development Corp.) 16THESIS HIGHLIGHTS INDUSTRY OVERVIEW DENVER, COLORADO CASE STUDIES SUMMARY APPENDIX
    • CASE STUDIES HEDGE FUND INDUSTRY GLOBAL HEDGE FUND PLAYERS BY AREA PFAEFFIKON, SWITZERLANDTHE GLOBAL BILLION Number Jan 2007 % of Total % of Total Funds • Pfaeffikon, Switzerland is the home of many hedge funds, DOLLAR CLUB – BY of Billion AUM $B Assets* managing a total of up to $100 billion.LOCATION OF MANAGER Dollar • Tax rates as low as 11.8% for corporates, 19% for individuals, (JAN 07) City* Firms and 10% on dividend are the lowest in Switzerland.New York 123 649.78 41.55% 35.04% • Quality of life also plays a large role in attracting hedge fund London 72 261.00 16.69% 20.51% managers to Pfaeffikon, as it is surrounded by lakes and Greenwich, CT 20 102.97 6.58% 5.70% mountains and is a short train ride from Zurich.Boston 13 66.96 4.28% 3.70% • The surrounding villages offer a very good quality of life, San Francisco 12 63.25 4.04% 3.42% good public transportation with winter and summer sports in Dallas / Fort Worth 8 29.70 1.90% 2.28% abundance, and no traffic problems and delays getting to Los Angeles 8 16.98 1.09% 2.28% work to worry about.”Stamford, CT 6 25.30 1.62% 1.71% • “Twenty years ago, it was pretty much a farmers’ village, but Paris 6 20.97 1.34% 1.71% in the last 15 years or so, it has seen a boom in capital from Sydney 5 21.22 1.36% 1.42% the finance and the asset management industries due to its Tokyo 5 10.42 0.67% 1.42% low tax regime”Hong Kong 5 9.53 0.61% 1.42% Bermuda Westport, CT 4 3 12.41 38.80 0.79% 2.48% 1.14% 0.85% HONG KONGBoca Raton, FL 3 7.24 0.46% 0.85% Stockholm 3 7.12 0.46% 0.85% • “Hong Kong and Singapore have doubled in size as Houston 3 6.00 0.38% 0.85% centers for the world’s biggest hedge funds over the past Minnetonka, MN 2 12.10 0.77% 0.57% 12 months, at the expense of London and New York, Atlanta 2 4.86 0.31% 0.57% writes the FT. According to data due to be released by 2 4.64 0.30% 0.57% Hedge Fund Intelligence, Asian cities are home to 18 hedge Milwaukee, WI 2 4.59 0.29% 0.57% funds managing more than $1bn – an industry benchmark Harrison, NJ 2 4.30 0.28% 0.57% for success – compared with just 10 a year ago. New York Moscow 2 3.62 0.23% 0.57% remains the hedge fund industry’s leading center, with Oslo 48 180.05 11.51% 13.68% 128 funds worth over $1bn, while London is home to 63.Other 17 THESIS HIGHLIGHTS INDUSTRY OVERVIEW DENVER, COLORADO CASE STUDIES SUMMARY APPENDIX
    • CASE STUDIES VENTURE CAPITAL INDUSTRY Boston, Mass VC Community September 17, 2008 Billions of VC Dollars in Boston Commonwealth Capital held their annual open house this week at their Winter Street offices on "VC Hill" in Waltham. VC Hill is to Boston/Waltham what Sand Hill Rd is to Silicon Valley...the center of Venture Capital for the region. Commonwealth Capital recently closed on a large new venture capital fund. Longworth Ventures, another Boston/Waltham based VC firm, also recently closed a new fund. In fact, over the past year or so, several Boston firms have raised over $2 Billion in venture capital. While the financial markets on Wall Street are in a panic, the venture capital community in Boston is strong, with billions of dollars to invest in innovative startups. Boston based VC firms that have raised funds over the last year or so include; Flybridge Venture Capital, Spark Capital, Fairhaven Capital, Commonwealth Capital, Longworth Venture Partners, Battery Ventures, 406 Ventures, Ascent Venture Partners, and Staley Capital. The total funds raised exceeds $2 Billion. If you look over the past three years the funds raised in Boston exceeds $10B, with giant firms like Polaris Ventures, Highland Capital, and General Catalyst raising huge funds. Microsoft is making a big commitment to innovation in Boston area as well. Microsoft has established a campus at One Memorial Drive in Cambridge, strategically located right next to MIT, just across the river from Boston. The company has established a new research lab there under the direction of Jennifer Chayes and Christian Borgs that will work with MIT, Harvard, and other area universities to further strengthen the research community in Boston. 18THESIS HIGHLIGHTS INDUSTRY OVERVIEW DENVER, COLORADO CASE STUDIES SUMMARY APPENDIX
    • CASE STUDIES STATE & VC ALLIANCE Mass Challenge ‐ VC Community, Boston MA Our mission Why now? Catalyze a startup renaissance. The current economic crisis is an enormous opportunity in disguise. Technology is converging across industries and transforming the What we do way we do business. Shifting technology has rendered many We help early‐stage entrepreneurs win. business models obsolete, and has left millions of people We connect entrepreneurs with the resources they need to launch unemployed and thousands of offices empty. These are the very raw and succeed immediately. materials required for new business generation, and technological Our primary activities include running an annual global startup advancement is also enabling whole new categories of businesses. competition, documenting and organizing key resources, and By investing now in innovation and entrepreneurship, we can organizing training and networking events. transform whole industries and define the next generation of economic growth engines. Our Vision We envision a creative and inspired society in which everyone Whats missing today? recognizes that they can define their future, and is empowered to The world is full of great ideas, but only a few become reality. maximize their impact. Novice entrepreneurs require advice, resources and funding to bring their ideas to fruition. Currently there is a gap between the Our Objectives resources these entrepreneurs need and the ability of the •Promote innovation, collaboration and commercialization entrepreneurial ecosystem to provide them. •Address the seed‐stage investment gap, empowering novice The Solution entrepreneurs We are addressing this gap by launching the world’s largest startup •Provide educational opportunities for entrepreneurs competition. We use the power of competition to create urgency, •Showcase entrepreneurship assets and infrastructure locally and and to identify and aggregate high‐impact teams and resources. We nationally strengthen and accelerate finalists by providing them high‐quality, personalized mentorship and by connecting them to potential team members, advisors, customers and sponsors. http://masschallenge.org As an independent not‐for‐profit, we are solely motivated to support and strengthen entrepreneurs – no strings attached. 19THESIS HIGHLIGHTS INDUSTRY OVERVIEW DENVER, COLORADO CASE STUDIES SUMMARY APPENDIX
    • CASE STUDIES WHAT LURES ASSET MANAGEMENT FIRMS? WHAT WILL LURES ASSET MANAGEMENT FIRMS? •Tax Arbitrage and or incentives •Regulation or special Colorado Structure •Alliance of current firms and vendors •DU‐ CU programs that focus on finance ‐ portfolio management ‐ special designation Triggers •Quality of life •Tax rebates for institutional investors meeting Denver Managers •Create an Asset Manager Alliance working with the Universities with research and resources Incentives •Reinvestment incentive ‐ 1031 exchanges ‐ SBIC ‐ pension fund mandates •Reinvestment pools •Seeding funds Potential  •Hedge Funds Hotels Actions •Education ‐ privately raised funds for foundations for Denver schools 20THESIS HIGHLIGHTS INDUSTRY OVERVIEW DENVER, COLORADO CASE STUDIES SUMMARY APPENDIX
    • SUMMARY WALL STREET OF THE WESTLOCATING YOUR FINANCIAL COMPANY IN METRO DENVER IS A SMART INVESTMENT • As the "Wall Street of the West," the Metro Denver & Northern Colorado region is one of the few areas outside of the northeast with a substantial financial services With 18 direct industry in three key market segments: banking & finance, investments, & international flights insurance. from Denver International Airport daily, it’s easy to reach new customers Plus, recruiting & finding talent in the region is never a throughout the world. problem since Colorado ranks second in the country for & if contingency is percentage of residents with a bachelor’s degree or higher. important to your In fact, the region has a stronger than average concentration of company, you should financial services employees, with 5.7 % of the regional know that our natural workforce employed in financial services‐related occupations, disaster risk is compared to a U.S. average of 4.5 %. minimal compared to the east, west, & southern coasts. Real‐ time connections to 6 of 7 Continents in a business day. Convenient access as air travelers can easily • The region ranks third among the reach 2/3 of the 50 largest metro areas in nation within two 2010 for employment hours, & every North concentration in banking & American city with a finance, sixth in investments, pop. of 1 M or more & 22nd in insurance. The From global giants to regional players, a growing number of financial services within four hours. financial services industry companies are capitalizing on our highly educated & affordable workforce, low includes over 11,150 companies operation access, & central location. Do the math. Youll like how our numbers add up. & 87,460 employees. 21THESIS HIGHLIGHTS INDUSTRY OVERVIEW DENVER, COLORADO CASE STUDIES S U M M A RY APPENDIX
    • SUMMARY WHO IS JOHN GALT? JOHN GALT’S SPEECH I am a trader. I earn what I get in trade for what I produce. I ask for nothing more or nothing less than what I earn. That is justice. I dont force anyone to trade with me; I only trade for mutual benefit. Force is the great evil that has no place in a rational world. One may never force another human to act against his/her judgment. If you deny a mans right to Reason, you must also deny your right to your own judgment. Yet you have allowed your world to be run by means of force, by men who claim that fear and joy are equal incentives, but that fear and force are more practical. The world will change when you are ready to pronounce this oath: I swear by my Life and my love of it that I will never live for the sake of another man, nor ask another man to live for the sake of mine. Source: Atlas Shrugged, Ayn Rand 1957 22THESIS HIGHLIGHTS INDUSTRY OVERVIEW DENVER, COLORADO CASE STUDIES S U M M A RY APPENDIX
    • APPENDIX STATE ADVISORY MEMBERS & CONTACT INFORMATION MICHAEL FIELDS mfields@msfenterprises.com MICHAEL FIELDS 303‐847‐4649 MSF Enterprises, LLC CONTACT ADVISORY BOARD ANDY MASSIK CRYSTAL PARZIK Palladian Investment Partners cparzik@msfenterprises.com 303‐847‐4650 ANDY BEGAL Tongal JACK CRAWFORD 700 17th Street, Suite 675 Denver Finance Lab Denver, Colorado 80202 MATT STOVER MG Stover & growing… DISCLAIMER: The information contained may be privileged and/or confidential, & is intended only for the use of the person to whom it is addressed. If the reader of this message is 23 not the intended recipient [or such recipients employee or agent], you are hereby notified not to read, distribute, use or the materials attached. Thank you.THESIS HIGHLIGHTS INDUSTRY OVERVIEW DENVER, COLORADO CASE STUDIES SUMMARY APPENDIX