Frequently Asked Questions

We are a professional team empowering investment management innovators by giving them access to seasoned senior executives to assist in developing and growing the next generation money management firms.

Empowering Innovation in Investment Management

We are a professional team empowering investment management innovators by giving them access to seasoned senior executives to assist in developing and growing the next generation money management firms.


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?
The benefits are that you can have your assets managed by a small, innovative firm. There are many studies showing that smaller firms can be more adept investors than larger ones because they can put the money to work faster and without moving the market (and similarly when exiting positions).
Are there any qualifications a person must have to invest?
These investments are available to accredited investors, including entities such as institutions with a minimum of $ to invest. They are also available to individuals satisfying the following criteria: xxxx
Why do I need to be qualified by a broker?
You need to be qualified because this offering is a private offering requiring a certain level of investment experience or assets in order to ensure it is appropriate for you.
When do I pay?
The payment for the investment should accompany the completion of forms agreeing to the investment.
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?
Katalyst is compensated for its work through minority equity participation in the underlying investment firm along with a portion of its revenue. Katalyst’s interests are aligned with that of investors in that both groups succeed when the manager does a good job of both investing and growing its business.
What is the reporting and communication frequency and content once we make an investment until it is liquidated?
All investors will receive quarterly summaries of their investment and progress of the investment firm’s business.
How much involvement do investors have post-close with Katalyst and with the underlying teams?
As stated above, investors will receive quarterly reporting at a minimum. Katalyst is open to customized working relationships with investors providing initial and large amounts of capital to the firms.
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?
In a phrase, our Expertise Capital. Our investment management firm partners are generally very early stage, and require extensive assistance to transform them into thriving asset managers. Katalyst differs from seeders, who generally allocate funds to the firms to invest, thus providing assets under management but not working with them to build their businesses.
Why should we work with you?
We provide a launching pad for your investment capabilities. We will help you mold your investment ideas into a great business.
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?
We dig deeply into your investment process and record, as well as get to know you as a potential partner. We will also assess whether your strategy can be transformed into a successful business.
How long will it take to raise assets to manage?
It typically takes 12-24 months to raise assets once a verifiable investment process with a track record of 2-3 years exists. The range varies according to several factors including whether the track record is live (vs. paper), the status of the investment process, and the tenure of the investment team.
To what extent will you provide working capital?
Katalyst will work with investors to 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.

How is Katalyst compensated?
Katalyst is compensated through a combination of meaningful minority participation in revenues and equity ownership.
How do you help me raise capital?
Our team of partners and advisors has extensive business development experience and contacts in the industry. We will actively target potential investors based on suitability for your investment strategy.
Beyond raising capital, what do you do for me?
We provide Expertise Capital to help mold your investment capabilities into salable investment products, position those capabilities in the marketplace for asset gathering, and help you build and manage your business until spin-off.
How do I list my company on your website?
Do I get to choose who is allowed to invest in my company?
We will work with you to target investors, but you may not have the independent authority to pick each investor.
What documents are necessary for a company to raise money?
Will a company’s information remain confidential?
Yes, all information will remain confidential until and unless there is agreement that it should be shared with investors.
What relationship will a company have with investors post-closing?
Katalyst will coordinate communications relating to ownership and firm status if so desired, while the individual manager will communicate on the status of the public market investments (?)
What about the JOBS Act?
“CircleUp is not immediately impacted by this law change because of our focus on accredited investors and the fact our offerings are permitted through an existing exemption, Rule 506 of Regulation D. Companies have been raising capital through this exemption for years and are permitted to do so independent of the new rules outlined in the JOBS Act”.