KATALYST PARTNERS
THE OPERATOR'S ADVANTAGE
WE ACQUIRE, OPERATE, AND GROW BUSINESSES WHERE WE CAN LEVERAGE OUR DIRECT OPERATING AND DOMAIN EXPERTISE TO CREATE ENTERPRISE VALUE.
BY DISSECTING THE VALUE CHAIN, IN INDUSTRIES WHERE KATALYST HAS DIRECT OPERATING EXPERIENCE, KATALYST IS ABLE TO IDENTIFY INVESTMENT OPPORTUNITIES WITH STRONG BUSINESS FUNDAMENTALS CAPABLE OF GENERATING OUTSIZED RETURNS AT THE CURRENT STAGE OF THE ECONOMIC CYCLE.
PROFESSIONALIZING BUSINESSES
Diving into the business for an extended initial period implementing a results-focused business operating system to drive sustaining change in customer service, operational efficiency, organizational culture, and sales.
EXPANDING
MARGINS
Cost reduction and revenue expansion from product sourcing, product development, and unit economic driven customer acquisition marketing strategy.
NAVIGATING INDUSTRY
VALUE CHAINS
From an operational lens that is aware of overlooked industry and business dynamics such as franchisor/franchisee relationships, digital economy threats, hourly worker management, and increasing costs as well as concerns with auto insurance.
INVESTMENT CRITERIA
Katalyst is an investment partnership of entrepreneurs with access to greater than $25mm in capital and significant operations experience acquiring businesses that we can scale leveraging our experiences and leading a capable management team.
We are currently interested in making investments that meet the following criteria:
BUSINESS
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Stable, recurring revenue with scalability
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Sustainable competitive advantage
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Opportunistic industry dynamics
FINANCIAL
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$4 - 40 million in revenue
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$1.0 - 4.0 million in EBITDA
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10%+ EBITDA margin
SITUATIONAL
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Capable management team in place
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New vision needed to grow the business
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Existing owners looking for a transition
ASYMMETRIC RETURNS
"Investors can access public markets via ETFs or mutual funds, and benefit from passive index products flourishing, but they cannot access the true outliers of growth within private markets. This asymmetry is due primarily to opportunities for significant gain being increasingly concentrated in private markets, as exclusive information that alpha is derived from continues to dissipate from public markets."
~ Garrett James Black
Katalyst is an investment partnership of entrepreneurs with access to greater than $25mm in capital and significant operations experience acquiring businesses that we can scale leveraging our experiences and leading a capable management team.
We are currently interested in making investments that meet the following criteria:
SECTOR FOCUS
Katalyst is only focused on acquiring businesses where the firm has direct domain expertise to minimize the number of unknowns, avoid overlooking hidden industry and business dynamics, and ensure Katalyst is able to drive value and execute its vision through its VCP unlocking significant value for investors while mitigating downside risk.
REAL ESTATE
(VALUE-ADD)
NON-DISCRETIONARY CONSUMER AND BUSINESS SERVICES
NON-LOCATION DEPENDENT
FRANCHISORS
MACROECONOMIC TRENDS
We are at the tail-end of the business cycle requiring insider knowledge from true operators to identify businesses capable of generating outsized returns in the following conditions:
ECONOMY
Tariff
implications
LABOR
Labor shortage and inflationary wage trends
TECHNOLOGY
Shared economy and technology competitors
INFLATION
Supply and demand-side inflationary pressures
FAVORABLE BUSINESS DYNAMICS
Katalyst's operational expertise provides a strategic advantage in identifying businesses positioned with favorable business dynamics.
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Able to absorb inflationary pressures
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Low capital expenditure requirements
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Protected from the shared/digital economy
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Strong unit economics with defensible margins
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Clear path to scale and execute a VCP
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Insider sector/business operating knowledge
FAVORABLE
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Poor Porter’s Five Forces
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Capital intensive business models
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Threatened by the shared/digital economy
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Margins highly dependent on low labor costs
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Location-dependent businesses
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Insurance risk
UNFAVORABLE
PERSISTANCE
"Nothing in this world can take the place of persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent. The slogan Press On! has solved and always will solve the problems of the human race."
~Calvin Coolidge
INVESTMENT PHILOSOPHY
An operationally-focused investment firm determined to deliver value based on proven operational success with access to over $25MM equity capital from our principals and investors.
ASYMMETRIC RISK
Identify opportunities of asymmetric risk to maximize returns and mitigate risks
CLEAR PATH TO GROWTH
Pursue opportunities with clear pathways to growth aligned with Katalyst's operating expertise, and
DRIVE VALUE AND EXECUTE
Deploy into each company to drive value and execute the Katalyst value creation plan.
SELLER ADVANTAGE
Our principals assume active roles in the company allowing owner flexibility in their level of involvement in the business. We will provide a flexible, customized transaction structure tailored to the seller's needs as a priority enabling tax efficient tax planning and upside opportunity by retaining an interest in the business, if desired.
PRIOR PORTFOLIO
We offer both capital and management talent towards growing and transforming our portfolio companies.
MANAGING PARTNER'S BACKGROUND
Katalyst Partners is an investment partnership of entrepreneurs with access to greater than $25mm in capital that invests in and consults companies with strong fundamentals and can benefit from hands-on involvement by our principals. Our Managing Partner, Boris Katsnelson has over 20 years of investment banking, private equity, operating and transformational leadership experience. He began his career in investment banking and private equity that springboarded him into a career of investing and running companies. He was an instrumental part of the turnaround of Sleep Innovations, a foam manufacturer serving B2B and consumer markets, that was in bankruptcy. Katsnelson built a $25+mm new business unit and revamped the B2B division's go-to-market strategy that led to doubling the business in 2.5 years. Katsnelson subsequently acquired and ran SpeedPro Imaging, a 100+ unit franchisor. As CEO, he revitalized the organization and its systems, leading to significant gains in systemwide sales and franchise unit count. More recently, Katalyst acquired College Hunks Hauling Junk and Moving in Denver and established operating systems that led to 230% revenue growth in the first year of its ownership. Katsnelson then ventured back into consumer products, acquiring Ultra Cuisine, an ecommerce bakeware products company. Leading a lean team, Katsnelson was able to double revenue and profits leveraging his prior experience in product development and working with overseas factories. Currently, Katsnelson is scaling Cedar, a real estate venture focused on finding homes from motivated sellers and buying them for cash for himself and other investors.
CONTACT US
We are actively reviewing and pursuing acquisition opportunities that meet our investment criteria. If you are interested in learning more about Katalyst Partners, discussing a potential transaction, or conveying another opportunity please complete the form or email boris@thekatalystpartners.com.