Colorado is becoming a private equity partner favorite
Colorado isn’t just hot for tech startups and energy development. It’s also quickly becoming perhaps the best-kept secret in private equity today. The Centennial State boasts a business-friendly environment and is home to one of the top-rated talent pools in the country. Many come for the beauty and adventure and stay for economic opportunities. And, more often, they’re doing it the other way around as well.
There are a variety of reasons why partners may choose to live and/or do business in Colorado. For many, the three main reasons are due to the state’s business friendliness and, by extension, flourishing economy, it’s highly skilled workforce, and the lifestyle advantages of living here.
- Business in Colorado.
Colorado’s economy is ranked first in the U.S. With a friendly business environment, steady growth, and low unemployment, it’s been easy for investors to see Colorado as an excellent opportunity. Forbes ranked Colorado as the eighth-best state for doing business, where companies have access to the country’s second most educated population. The magazine also ranks Colorado at number seven for growth prospects.
- Highly Skilled Workforce.
As previously mentioned, Colorado is home to the country’s second most educated workforce. Forbes notes that 41% of Colorado’s adult population has a college education. And the population of adults aged 25 – 34 is the second-highest in the country.
When considering where to invest (and/or where to move yourself!?), areas with a highly trained and skilled labor force offer some of the best opportunities for growth. The “brain concentration” of these types of places tend to create a sort of multiplier effect of ideas and innovation, often propelling growth even further.
- Lifestyle Advantages.
Among the variety of reasons, Colorado offers such a skilled and diverse workforce is due to the lifestyle advantages provided in the state. Colorado has experienced tremendous population growth over the past decade, and lifestyle has a lot to do with it. Young professionals specifically are flocking to Colorado to take in the state’s active, outdoor lifestyle. Additional lifestyle benefits include easy access to one of the country’s top-rated international airports, and an abundant arts, music, and food culture.
Colorado: An Emerging Who’s Who In Private Equity?
Some well known private equity firms call Colorado home to take advantage of these benefits and more. Partners Group, a firm based out of Switzerland, had announced it will open a second headquarters in Broomfield late 2019. Others include Black Lake Capital, Lion Equity Partners, and The Decatur Group to name a few.
A rendering of the headquarters under construction by Partners Group in Broomfield, Colorado.
At the same time, PE investment in Colorado businesses continues to be strong. Real estate investment is a favorite for many firms, but all manner of industries are represented. Colorado’s diverse economy provides ample investment opportunities for firms focused on professional services, technology, and energy development markets.
Colorado hasn’t received the investment attention of traditional hotbeds such as Silicon Valley and Boston. But, the state’s burgeoning popularity means that now is a great time to take a look at Colorado investment. The state’s business friendliness, skilled workforce, and booming economy make it a great place for business investment.