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A year of expenses, then quit
The solar side business
Italy was handing out a feed-in tariff for solar plants, and private equity funds were arriving to find land for them in Southern Italy, where most landowners didn't speak English. The funds didn't understand local financing or permits either. After the 2008 crisis the law firm had so little work that he was done by about 9 p.m., so he had time to spare.
He started connecting funds and land like a broker, checking whether a plot could get its permits. Every night from 10 p.m. to 2 a.m. he worked on it with the man who became his co-founder. It took almost a year to see money, and within roughly nine months to a year he was making more on the side than at the law firm.
The decision to quit
He had about 10,000 in the bank and a plan: with a year of expenses saved, he could quit, and if he failed, his boss would probably take him back because he was good. Then his father died and left the family with nothing but debts. His mother told him not to even think about quitting, because if he failed there was nothing the family could do for him. He thought about it for a day and quit.
For about ten years afterward he sometimes dreamed of failing and having to ask the firm to take him back, and the dream was a nightmare.
Why did Italy pay for solar electricity?
A feed-in tariff is a government guarantee to pay a fixed price for renewable electricity over a long contract, often around 20 years. The guarantee lets investors count on steady income, which makes banks willing to finance the plants. Italy ran its version under a program called Conto Energia, which began in 2005. By 2012, Italy ranked among the top countries in the world for installed solar capacity.
Why did the 2008 crisis empty law firm calendars?
Large law firms earn much of their revenue from deals, such as mergers, acquisitions, and bond sales. When credit froze after the 2008 financial crisis, companies cancelled or postponed those transactions. Fewer deals meant far less work to hand to junior lawyers. Global merger volume fell sharply in 2009 compared with its 2007 peak.
Why do funds struggle with local land deals?
Rural land is often split among many small owners, and each sale is negotiated person by person. Permits for an energy plant pass through regional and municipal authorities with their own rules. A fund based abroad usually lacks the local contacts and language to handle either. A local intermediary who can check a plot's permits fills that gap.
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