There are many reasons why your company could be looking to raise growth capital – expand into new markets, develop new products, establish new locations, or purchase equipment to expand operations. These are a few common reasons why businesses seek out additional financing and look to the private equity firms Houston has.
Not only are there many reasons why your company could be looking for capital, but there are also many ways in which to do it. However, here at The Catalyst Group, we believe the best way is through partnership capital.
Partnership capital is a term coined by us to represent our commitment to building long-term relationships with company owners. We think entrepreneurially and operationally as we help companies execute on strategic plans. We believe adding real value, in addition to growth capital, is what a true partner does.
One of the main benefits of partnership capital is the collaborative relationship that evolves. We do more than just supply capital, we offer strategic leadership as well. We work hand-in-hand with our companies management teams to drive favorable operational outcomes. We are fully invested in meeting company goals and objectives. Agreeing to a strategic plan before investing ensures that all stakeholders are aligned on both goals and approach.
Another benefit of partnership capital is that there is no reliance on short-term outcomes like you might see with other firms. The Catalyst Group’s focus lies on executing long-term strategic growth plans and not on short-term decisions that can gain the best results in a three or five year time frame.
When utilizing partnership capital, your company also gains access to the broad expertise of our investment team. Our biggest strength is our people. We are experienced engineers, financial experts, corporate strategists and recognized business leaders with diverse backgrounds. We bring a unique approach to every transaction, ensuring that every partnership receives the attention it deserves.
Other private equity firms Houston has that don’t practice partnership capital often focus too much on the short-term financial return. Ultimately, this can mean that decisions will be made that under normal circumstances would not. The business can be taken in a different direction than intended, with owners feeling like they’ve lost control instead of partnering with a strategic team.
All the private equity firms Houston has can also rely too much on debt financing. While utilizing debt can be an effective tool for raising capital, relying on it too much or using it in the wrong way can make businesses more vulnerable to changing market conditions. Debt can be misused and overused, putting a financial strain on your business and making it difficult to seize new opportunities. The Catalyst Group only uses debt for working capital and long-term asset purchases, not as a tool to leverage returns.
Partnership capital is a win-win scenario for all parties involved. We have nearly 30 years of experience transforming and funding over 100 companies through partnership capital. Connect with us today to see what we can do for you.