Catalyst Investors related stories
All articles and analysis
The VC Roadmap for BuyoutsIn a recent DealBook column http://dealbook.blogs.nytimes.com/2009/09/22/a-financier-peels-back-the-curtain/ by Andrew Ross Sorkin, Guy Hands of buyout firm Terra Firma provides an unvarnished appraisal of the buyout industry’s bubble-era mistakes and its post-bubble outlook. It will surprise no one if the large majority of buyout deals completed during the credit bubble of 2006 to 2008 turn out to be bad deals. If that was the only issue facing buyout funds, everyone could just take their lumps and move on in a couple of years. The core problem is much more fundamental. The buyout industry has sized itself based on management fees drawn not only on the record amount of capital invested during the bubble years, but also on the record amount of committed capital for investments yet to be made. The pressure to maintain high management fees and the large amount of undrawn capital commitments conspire to create an environment in which even the deals that get completed after the credit bubble (i.e. from 2009 to 2012) are also likely to produce poor returns in the aggregate. Unless the industry reforms itself, the net returns for vintage year 2006 to 2010 buyout funds are likely to be worse than even Mr. Hands predicts.
- peHUB Rewind
Here’s a look at the past two weeks of scoops, opinions and analysis from the peHUB blogging team. Read ‘em before they go behind our subscriber paywall… Buyouts: KPS Tops Off Fund III with $800 Million http://feedproxy.google.com/%7Er/pehub/blog/%7E3/W8m54c6Hago/ Lovell Minnick Already Beating Target on Third Fund http://feedproxy.google.com/%7Er/pehub/blog/%7E3/0wAdUs5W0Vk/ Southlake Equity Back In The Fundraising Saddle http://feedproxy.google.com/%7Er/pehub/blog/%7E3/blhtaOCjViI/ LP Organization Lays Out Guidelines http://feedproxy.google.com/%7Er/pehub/blog/%7E3/cK6dBuW92mM/ One Year Later: Where Are The PE Arms of Failed Banks? http://feedproxy.google.com/%7Er/pehub/blog/%7E3/hfV2b0-RJFA/ This Time Last Year We Were So Wrong http://feedproxy.google.com/%7Er/pehub/blog/%7E3/xx-7QuM6s4A/ Private Equity Doesn't Have A Sweet Tooth (Historically) http://feedproxy.google.com/%7Er/pehub/blog/%7E3/QXs4kxGC8dI/ Sexual Harassment Against PE Exec Still Active http://feedproxy.google.com/%7Er/pehub/blog/%7E3/w58Qzm747-4/ Midweek M&A Madness http://feedproxy.google.com/%7Er/pehub/blog/%7E3/PHvA4cpgyds/ "Our Deal Pipeline is Rocking": Fifth Street Secures New Facility http://feedproxy.google.com/%7Er/pehub/blog/%7E3/S7utpCRmeSU/ GE Capital Lays Off Five Investment Pros http://feedproxy.google.com/%7Er/pehub/blog/%7E3/JOlU_nzfKsE/ Weekly Downgrade Wrap-Up http://feedproxy.google.com/%7Er/pehub/blog/%7E3/LgTkkPae2CY/ What's Up With American Capital's "Acceleration"? http://feedproxy.google.com/%7Er/pehub/blog/%7E3/29OT46U0PT0/ Pay-to-Play Investigation Hits CalPERS http://feedproxy.google.com/%7Er/pehub/blog/%7E3/Nt7CADpeO9g/ Grande Communications Buyout To Close Monday http://feedproxy.google.com/%7Er/pehub/blog/%7E3/Fnhm5NbMTPU/
- Video Q&A with Brian Rich of Catalyst Investors
Earlier today I chatted with Brian Rich, managing partner and co-founder of growth equity firm Catalyst Investors. We talked media deals, SaaS and PIPEs:
- Video Q&A with Brian Rich of Catalyst Investors
Earlier today I chatted with Brian Rich, managing partner and co-founder of growth equity firm Catalyst Investors. We talked media deals, SaaS and PIPEs:
- Catalyst Sells Aplus.net to Deluxe Corp
Catalyst Investors has sold Aplus.net to Hostopia.com Inc., a unit of Deluxe Corp. (NYSE: DLX). No financial terms were disclosed. Aplus was acquired by Catalyst Investors in late 2006, and is a a San Diego-based provider of website presence solutions.
- The Death (and Rebirth) of Media Private Equity
It is no secret that media has long been a very popular sector among private equity investors. Its popularity was shared among lenders, who were willing to lend to media companies at much higher multiples than they would to other industries because of the underlying franchise or license value. The bad news for media investors and lenders is that the 2007 to 2009 period is no normal cyclical downturn, and the oligopolistic franchise value no longer exists. The advertising revenue base and valuation multiples for radio and magazine companies have experienced a permanent structural decline. The bulk of the decline has been driven by the loss of pricing power for radio and print advertising due to the emergence of the internet. There is also potential for further decline as consumer spending, and thus advertising, becomes a smaller share of the US economy. The good news is that there is light at the end of the tunnel for radio and magazines. Surviving the current downturn will be a victory for any media investor, yet there are opportunities for new investors to enter the industry.
- Catalyst Investors Backs BLI Messaging
BLI Messaging, a Providence, R.I.-based provider of email, voice, fax and text messaging marketing solutions, has raised an undisclosed amount of private funding from Catalyst Investors.