Jason Howard Launches New Catalyst Strategic Partners
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Insights
The formation of New Catalyst Strategic Partners, supported by Apollo, represents a significant event in the alternative investment industry. The provision of seed and growth capital to emerging and developing firms, especially those managed by diverse and experienced investors, can stimulate the creation of new private market strategies and bolster the expansion of existing ones. This initiative could lead to increased competition within the private equity space, potentially driving innovation and yielding higher returns for investors. The strategic partnership with Apollo provides New Catalyst with a robust cornerstone capital commitment, which could enhance the firm's credibility and attract additional investors, thereby increasing capital inflows into the alternative investment sector.
Furthermore, the involvement of seasoned professionals like Jason Howard and Demetrius Sidberry, with their extensive networks and expertise, may improve the deal flow and due diligence processes, potentially leading to better investment decisions. This could result in outperformance relative to industry benchmarks, thereby impacting the broader market. The firm's emphasis on supporting Next Generation GPs could also lead to a more diversified and inclusive investment landscape, which is increasingly valued by institutional investors. Overall, the partnership between New Catalyst and Apollo could have a ripple effect on the market, influencing asset allocation strategies and possibly leading to shifts in market dynamics.
The launch of New Catalyst and its strategic partnership with Apollo signal a growing interest in supporting Next Generation GPs within the private markets. This trend aligns with the broader industry movement towards diversity and inclusion, as well as the recognition of untapped potential in emerging and developing firms. By targeting this segment, New Catalyst is positioning itself in a niche that, while competitive, is ripe for growth. The firm's focus on providing a suite of resources, from fundraising support to value creation, addresses a clear market need for Next Generation GPs often constrained by limited access to capital and operational support.
Moreover, the firm's commitment to innovation and growth may attract attention from limited partners (LPs) seeking differentiated investment strategies and higher potential returns. This could influence capital distribution, with more LPs allocating funds to alternative investments and emerging managers. The partnership with Apollo could also set a precedent for larger, established investment firms to support smaller, specialized entities, potentially reshaping the landscape of private equity investments and strategic partnerships within the industry.
The strategic partnership between New Catalyst and Apollo, where Apollo maintains a minority economic interest, is a sophisticated arrangement that could have legal and regulatory implications for both parties. It is important to note that while New Catalyst operates independently, the nature of the partnership and Apollo's minority stake may necessitate careful navigation of fiduciary duties and conflict-of-interest policies. The legal structure of the partnership will likely be designed to ensure compliance with financial regulations and to protect the interests of all stakeholders, including investors in New Catalyst's funds and Apollo's managed vehicles.
Additionally, the focus on diverse and emerging managers may attract regulatory attention, as there has been a push for greater transparency and equality in investment opportunities. The partnership's success in fostering innovation and growth in this area could influence future regulatory policies concerning investment firm collaborations and the support of underrepresented groups in private equity. The legal framework established for this partnership could serve as a model for similar future initiatives within the financial industry.
Independent Investment Firm Focuses on Solutions for Next Generation Private Markets Managers
New Catalyst Launches with Founding Support from and in Strategic Partnership with Apollo
The New Catalyst platform offers Next Generation GPs with a range of solutions, including:
- Seeding new private market firms;
- Acceleration capital for existing private market firms;
- Co-sponsoring company acquisitions; and,
- Providing catalytic growth capital for launching new investment strategies, scaling investment teams and other structured investments.
New Catalyst was founded with support from and in strategic partnership with Apollo (NYSE: APO), including a cornerstone capital commitment and operational support to help create value for the Firm and its investments.
Jason Howard, Founder and Managing Partner of New Catalyst Strategic Partners, said: “Even some of the most experienced investors face significant challenges when founding and growing new investment platforms, and these challenges can be even more pronounced for Next Generation GPs. I have spent my career helping great investors build high-performing firms, and I’ve seen firsthand that LP capital alone is often insufficient to help Next Generation GPs realize their potential. With the launch of New Catalyst, we will look to serve as the catalyst this industry needs. We have built our firm to provide much-needed resources, advice and bespoke solutions, which we believe can foster innovation and growth in the industry.”
Mr. Howard has extensive experience sourcing, investing in and advising Next Generation GPs to help them launch and scale their businesses. He previously spent nearly 14 years at GCM Grosvenor and Credit Suisse focused on investing in Next Generation firms, most recently as Managing Director and Co-Head of GCM Grosvenor’s multi-billion-dollar Private Equity Diverse Manager investment platform. He has served as one of the earliest investors in many successful Next Generation funds and provided such founder GPs with strategic advice and momentum-building investor validation that proved instrumental to their success. Mr. Howard has earned a reputation as a subject matter expert and “pre-consensus” investor for many institutional LPs.
In addition to Jason Howard, the New Catalyst founding team includes Managing Director Demetrius Sidberry, former Managing Director and Direct Equity Investment Committee Member at Hamilton Lane; and Senior Advisor and Operating Partner Scott Darby, who brings more than 20 years of business building experience, including senior operating roles with TPG and Vista Equity Partners. The team is purpose-built and has the breadth of experience, relationships and collaborative approach needed to successfully execute the Firm’s strategy.
New Catalyst intends to source investment opportunities across its vast manager network and provide its partner firms with day-one capital and support that is often difficult for Next Generation GPs to access. The Firm is committed to catalyzing growth throughout a GP’s development, including providing fundraising support, working capital, deal capital, portfolio management best practices and value creation resources. As a result, New Catalyst believes it can fuel innovation and provide differentiated strategies while helping more GPs succeed, not only for first-time funds but also for exceptional emerging managers raising subsequent funds.
Mr. Howard added, “I have been impressed by Apollo’s commitment to expanding opportunity in our industry. I want to thank the team at Apollo for believing in the New Catalyst strategy and for leveraging their resources to accelerate our launch. I look forward to continuing and growing our strategic partnership.”
Apollo is a founding supporter of New Catalyst and will continue to be a strategic partner to the Firm going forward. Apollo and its managed vehicles have committed significant capital to support New Catalyst’s growth, in addition to providing New Catalyst and its portfolio with strategic support and resources. New Catalyst is an independent firm with control over investment and operational decisions, and Apollo has alignment through a minority economic interest in the Firm.
Apollo Partner Bill Lewis said: “Next Generation managers are a large and important segment of the market for GP Solutions. Historical performance among these GPs, despite much more limited access to growth capital, suggests there is significant opportunity for attractive risk-reward, particularly for a platform that can address their unique needs. We believe the combination of New Catalyst’s capabilities with the resources that Apollo has built over 30+ years will provide a differentiated, value-add offering to Next Generation GPs.”
Apollo Co-President Jim Zelter commented: “Expanding opportunity is a core commitment of our business at Apollo. The strategic relationship with New Catalyst is a major step for our marketplace-focused Expanding Opportunity initiatives, under which we have committed approximately
About New Catalyst Strategic Partners
New Catalyst Strategic Partners (“New Catalyst”) is a majority diverse-owned and independent alternative investment firm founded by industry veteran Jason Howard. New Catalyst seeks to acquire economic interests and minority ownership in Next Generation private markets firms, providing them with the flexible, strategic capital and value creation resources they need to grow and succeed. To learn more, please visit www.newcatalystsp.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240109538075/en/
Media Contact:
TJ White
Managing Director, Sloane & Company
twhite@sloanepr.com
Source: New Catalyst Strategic Partners
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