Relationship-Driven Capital: Malcolm Davies WAY Capital

In this episode of Deal Flow Friday, David Moghavem sits down with Malcolm Davies of Way Capital to unpack what’s really happening in today’s capital markets—and how capital raising has fundamentally changed.

They explore why the traditional “spray and pray” approach to raising equity no longer works, and how the market has shifted toward a relationship-driven model where trust matters more than projected IRRs. Malcolm shares how Way Capital—short for “We Are You”—approaches capital advising by aligning with sponsors and focusing on long-term partnerships over transactional deals.

The conversation also dives into how lenders are becoming increasingly creative, stepping into the equity stack and blurring the lines between debt and equity. From hybrid structures to profit participation, the capital stack is evolving in real time.

In addition, they discuss how AI is reshaping the industry—from underwriting and deal flow to operations—and why access to information is no longer the key differentiator. Instead, relationships, credibility, and trust are emerging as the true bottlenecks in getting deals done.

For operators, investors, and anyone raising capital in today’s environment, this episode offers a clear perspective on how to navigate the current cycle and position for what’s ahead.

Chapters

00:00 Current Global Inflection Point
01:38 Personal Background and Family Influence
02:41 The Value of Perspective and Gratitude
03:19 Starting the Podcast and Market Knowledge
04:46 AI Tools and Market Data Access
06:35 The Future of Capital Markets and Relationships
07:24 Podcasting and Deal Nuggets
09:51 Development Challenges and Market Conditions
11:50 Market Outlook for Los Angeles and Beyond
16:01 Building Trust and Relationships in Capital Markets
19:16 The Power of Introductions and Networking
22:21 Market Cycles and Credit Spreads
23:45 Market Bottoms and Future Opportunities
25:53 Operational Challenges and Asset Management
28:55 Lessons from the GFC and Market Resilience
36:50 The Impact of AI on Operations and Tenant Experience
41:05 Operational Performance and Asset Management
43:56 The Future of Capital and Relationship Building
47:28 Unshackling Bandwidth for Greater Deal Flow
49:21 Evolving Perspectives from Podcast Conversations
52:33 The Next Generation and Technological Edge

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