Catalyst Group

The Catalyst Group, Inc. is a private equity firm specializing in mezzanine and equity investments in middle market companies. The firm invests in PIPES, management participative buyouts of private companies or divisions of larger companies, recapitalizations of family owned or closely held companies, growth capital, and generational changes in ownership. It does not invest in real estate, oil and gas exploration and production, and financial services. The firm seeks to invest in manufacturing; distribution including durable and non-durable ; retail; hospitality; broadcast; business to business including energy services, "in-plant" process industry services and business to consumer services including men's hair salons and health care. It typically invests in the United States with a focus on the Southwest and Midwest region. For its equity investments, the firm seeks to invest between $2 million and $20 million. For its mezzanine investments, it invests between $1 million and $7 million. The firm invests in companies having revenues between $10 million and $100 million and a minimum operating profit of $1 million and with enterprise valuations normally between 0.5 to 1.0 times the revenue. It invests in companies that are in operation for a minimum of three years. The firm structures its investments in the form of preferred equity, subordinated debt with warrants, or a combination of both. The firm seeks advisory board membership on its portfolio companies. It prefers to make controlling equity investments. The firm prefers to only participate in negotiated opportunities, versus "bid or auction" processes. It typically holds its investments between five years and seven years. The firm may co-invest. The Catalyst Group, Inc. was founded in 1990 and is based in Houston, Texas with an additional office in Austin, Texas.