As the calendar ticks over into 2023, Tenn Capital CEO Matt Watson looks ahead to the new year.
It will probably be a tough 12 months for everyone, as we enter into a recession. There will likely be some pressure on house prices but Apple doesn’t stop selling iPhones, and we won’t stop lending. Whilst there may well be some downward pressure on value in parts of the market, we expect typically high value locations, to stand up well to any kind of recession, as they usually do.
In the second half of the year, interest rates will start to come down but until then, I imagine the year will see tight monetary policy. There are parts of the lending market that will stay particularly tough: buy-to-let will remain hard, development lending will remain hard.
Businesses in our sector will need to display why they are different. Being able to underline their uniqueness will remain critical. If companies are just doing the “vanilla bits”, it will be a difficult year. Sadly, there may well be a few casualties but great businesses, will perform really well. Some of those businesses in particular that we admire in different parts of the market are already positioning well for 2023.
In our market, HNWIs will still be looking for deals, and will still be looking for opportunities that exist in the short term.
For us as a company, Tenn will be expanding into Jersey, and we will also be taking on new people in the Guernsey office. Opening in Jersey will complete our footprint in the UK. We won’t be growing too much more during this coming year in terms of our team. We have been very selective in developing the team; I’m confident in who we have and that they will take Tenn further.
The target for the year is to make sure we continue to grow in a measured way, writing good loans and working with first class introducers.
I wish everyone a prosperous and healthy 2023.