“What is the preferred way to get introduced to The Catalyst Group?”
There is no preferred method to introduce an investment opportunity to Catalyst. However, priority is always given to those opportunities that have been referred through a mutual acquaintance or business contact.
“At what stage does The Catalyst Group typically invest?”
Catalyst invests in businesses that are generally at least three years old and have revenues of at least $10 million (or are on track to achieve this level within 6 months of funding). However, for rapidly growing businesses, we will consider relaxing these requirements.
“What size investment does The Catalyst Group typically make?”
Our mezzanine debt investments range from $1-7 million. Our equity investments generally range from $2-10 million.
“Who are The Catalyst Group's investors?”
Our investors, many of whom have been our investors since our founding in 1990, include our principals, private families, and institutions.
“How long does it take for The Catalyst Group to make an investment decision?”
Due to the number of opportunities that we review, the length of time to make a decision can occasionally vary slightly. However, as a matter of respect we make every effort to maintain dialogue with companies during our review process. In almost every instance, we can provide a reasonably thorough assessment within 7-10 days of receipt of the requisite material. We appreciate the value of your time and endeavor to avoid delaying your financing pursuit.
“What is The Catalyst Group's role after an investment is made?”
We strive to add-value by remaining informed and aware of opportunities and changes facing each portfolio company, frequently sharing operational perspectives while assisting management by maintaining a balanced outside perspective. We are able and willing to be as involved as management requires and requests.
“Does The Catalyst Group prefer to control portfolio companies?”
The Catalyst Group has the flexibility to invest in both majority and minority equity positions. It is our view that striving for a relationship built on respect and trust and a proper alignment of interests among all stakeholders is essential to any investment partnership success, versus a focus on the relative percentage ownerships of the parties, much less "voting central." We believe well managed companies operate with a consensual approach to key decisions.
“What is The Catalyst Group’s philosophy when working with management?”
We seeks to create a relationship with management based on the following precepts:
- Maintain the highest integrity
- Communicate clearly and frequently (internally and externally)
- Seek growth while relentlessly pursuing efficiency
- Reward achievement and share success
- Measure only what's important but respond to the measured results
- Have a bias for action
- Take measured risks
- Execute with persistence if the plan is correct; adapt and change if the plan is flawed
- Study, question, and strive for improvement daily
“How active is The Catalyst Group with its portfolio companies?”
We can be as active as necessary to help support the numerous challenges facing a management team. We desire to avoid micromanaging, but prefer portfolio companies to avail themselves of our external perspective, varied industry knowledge, contacts and experience.
“Does The Catalyst Group always want a Board seat?”
Normally, we desire to have Advisory Board representation with rights to Board information.
“How many investments does The Catalyst Group make per year?”
We are fortunate to review hundreds of opportunities annually, and generally fund less than five transactions per year.
“What is the length of time The Catalyst Group usually holds an investment?”
We typically hold our investments between five and seven years. However, we are flexible with some investments having been held short term, while other investments remain in the portfolio as long as ten years or more.
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