The investment case before the capital commitment.

Marker Street Partners · Investment perspective

Start with the ownership thesis

Define what is being acquired, the rights that come with it and the source of value during ownership. For a data center, that includes the relationship between the physical asset, customer contracts and the operating business.

Underwrite the income

Examine the durability of contracted income, customer concentration, renewal exposure and the cost of maintaining the business. Separate existing performance from income that depends on future events.

Account for all capital at risk

The purchase price is one part of the commitment. Ongoing investment, working capital, financing obligations and the consequences of delay belong in the same assessment. Technical requirements matter because they affect those economics.

Test the downside

Consider how changes in timing, cost, customer retention or operating performance affect the investment. Identify which assumptions change valuation and which would change the decision to proceed.

Make the decision explicit

An investment memo should connect the evidence to the proposed commitment, unresolved conditions and ownership responsibilities. Future capital decisions should be assessed against the same investment thesis.

A general investment framework. No particular asset, investment opportunity or outcome is represented.