FAQ’s
For Potential Investors:
What is so interesting about what Katalyst is doing?
Katalyst is uniquely targeting early stage innovative investment managers, then applying its deep expertise capital as well as financial capital to transform them into game-changers in the investment marketplace.
What makes your investments different from others I can find?
Katalyst offers a hybrid of private and public investing, where investors provide operating capital and also have the opportunity to have their money put to work by our investment firms. Our team of experts help the firms enhance their investment process and business management, both of which benefit investors.
Are these investments risky?
All investments have some risk. However, in these investments the bulk of the money will be used to invest in public securities with a smaller amount used as working capital for the firms, so the risk level is expected to be similar to the public securities.
Are there any other benefits to me if I also have them manage some of my assets?
Are there any qualifications a person must have to invest?
Why do I need to be qualified by a broker?
When do I pay?
What securities laws exemption are these transactions relying on?
How do I invest?
Can non-accredited investors invest?
No. Not at this time.
How is Katalyst compensated?
What is the reporting and communication frequency and content once we make an investment until it is liquidated?
How much involvement do investors have post-close with Katalyst and with the underlying teams?
Can general individual investors invest, and what are the requirements for them vs. institutional investors?
Does the JOBS Act have any impact on investors and regulations?
It is expected that the JOBS Act will not have any impact other than to stimulate growth and creation of new firms. Katalyst is already exempt from registration as a broker/dealer because of the focus on institutional investors plus accredited investors.
For Potential Investment Management Teams:
What makes Katalyst different from other firms who are seeding or incubating?
Why should we work with you?
Does Katalyst require exclusivity?
Yes, Katalyst requires that firms we partner with work exclusively with us, although we realize that in some cases firms may have pre-established ownership and operating arrangements. When we have significant influence on our partner firms, our expertise capital can have the greatest positive influence.
What is the due diligence process for you to determine if we’re a good candidate?
How long will it take to raise assets to manage?
To what extent will you provide working capital?
How long does your process take?
The process has a few components including due diligence (manager selection) and working to develop the firm. We anticipate the first stage as 1-3 months, followed by the second stage which takes 12-24 months.
What are you looking for in investment management teams?
We seek investment management teams that are innovative and also are open to input and suggestions to help them enhance either the investment process, the business and operations, or both. They also need to have a flexible mindset and be willing to share the rewards as consistent with the efforts to build their firm.