NEW YORK--()--Catalyst Investors, a growth private equity firm, announced Q1 investments in three companies – MINDBODY, BLI Messaging, and Chancellor University. The investments are consistent with the firm’s established approach of acquiring growth companies at reasonable prices. They also demonstrate a significant pick-up in capital deployment as compared with 2008, a year in which Catalyst had significant portfolio realizations but did not make new investments.
“While we looked at a number of potential new investments last year, we could not get to the right valuations. Sellers’ expectations have since tempered and there are now fair deals to be made in quality companies”
“While we looked at a number of potential new investments last year, we could not get to the right valuations. Sellers’ expectations have since tempered and there are now fair deals to be made in quality companies,” said Brian Rich, managing partner, Catalyst Investors. “Companies with solid business plans and proper funding can use the downturn to acquire market share.”
Catalyst’s research identified the immense potential of software-as-a-service (SaaS) years ago as evidenced by its 2001 investment in MessageLabs (acquired by Symantec in 2008). Catalyst specifically targeted MINDBODY as a market leader with tremendous growth opportunity. The company provides SaaS solutions for yoga studios, Pilates studios, fitness centers, spas, salons and other similar businesses.
“MINDBODY will use the proceeds to invest in sales and marketing, product development and expansion into other verticals,” said Tyler Newton, partner, Catalyst Investors.
In addition to SaaS, Catalyst sees long-term growth opportunities in other areas including hosted messaging solutions serving the fast-growing online marketing industry and online education, which is generally counter cyclical to the economy.
BLI Messaging is a provider of hosted messaging solutions, providing email, voice, SMS and fax marketing solutions on a single, unified platform. Chancellor University, a Cleveland-based business college founded in 1848, has educated prominent alumni including John D. Rockefeller. Chancellor recently launched its online education platform and is run by a management team with deep experience in the online education sector.
About Catalyst Investors
Catalyst Investors is a growth private equity fund founded in 2000. Catalyst employs a rigorous top-down research focus to identify investment opportunities in companies and industries that will exhibit strong revenue and margin growth. The firm works in true partnership with talented management teams to build long-term value. Catalyst has consistently achieved superior returns with disciplined risk management and a commitment to investor transparency. For more information, visit http://www.catalystinvestors.com/.
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