Is It Who You Know Or What You Know? | Monday Morning Musing #11

There’s a well known saying: “It’s not what you know, but who you know.” Others argue the opposite, that knowledge and expertise outweigh connections.

As some of you may know, we recently encountered a challenging situation that put this to the test. A loan was set to complete, only for the lender to pull out at the last moment. I am pleased to report that the loan closed with the same lender in the end.

That is not because the principles of the lending business suddenly had a change of heart or they managed to find comfort that was not apparent initially. On the contrary, they dug their heels in and all but disappeared staying aloof which left a bitter taste in our mouth.

Of course, giving up was never an option. Letting our client down wasn’t on the table, so I rapidly explored alternative solutions. Unfortunately, most of them were far from ideal. However, one potential avenue stood out: a major investor who backs that same lender.

Few people are aware of this connection, but because we have a direct relationship, we were able to explore it. Chalk that up as a win for ‘who you know’.

When I spoke to the investor, his initial stance on the loan was clear: he wasn’t keen. But this is where ‘what you know’ becomes critical. I was able to reframe the opportunity, provide compelling evidence, and restructure the loan to address concerns.

That turned the conversation around, and within days, we had completed using the very lender and their loan docs that had initially pulled out.

In the end, all’s well that ends well, but when you’re in the eye of the storm, it’s hard to see the way through. What got us to the other side wasn’t just one factor. It was a combination of grit, focus, determination, and most importantly, both ‘who we know’ and ‘what we know’.

With a panel of well over 200 funders, from high street and challenger banks to private debt funds, family offices, and high-net-worth individuals, we succeed because we understand what each lender is looking for.

We don’t just make introductions. We package opportunities in a way that makes funders eager to work with us time and again.

So, in my view in reality, success often hinges on both. Who you know may open doors, but what you know determines whether you can walk through them and be welcomed on the other side… which in turn can open endless more doors.