Private Equity

Q: What industries does Cat Trail invest in?

A: Typically companies within the media, health sciences and technology sectors. Cat Trail partners have a core competency within these sectors, enabling them to apply their experiences and networks to businesses that have the capability to become market leaders vis-á-vis unique blends of products, services, technologies, and/or intellectual property.

Q: Does Cat Trail have a target investment amount?

A: Cat Trail partners have participated in financings ranging from $1 million to $10 million. Transactions involving smaller investments will be considered if an exceptional opportunity is believed to exist.

Q: Does Cat Trail invest outside capital?

A: Cat Trail invests and manages its partner capital but may consider bringing in outside partners on a transaction-by-transaction basis.

Q: Is Cat Trail a lead-investor or a co-investor?

A: It can be either or both. Cat Trail has led financings in several of its portfolio companies as well as participated in syndicated rounds with other private equity firms that possess similar investment criteria.

Q: Does Cat Trail have a geographical focus?

A: Given Cat Trail's hands-on approach, it does possess some geographical preferences. Nevertheless, Cat Trail makes its investment decisions on a case-by-case basis depending on a number of factors, including the nature of its relationship with the managers and other investors.

Q: What are Cat Trail's revenue and profit thresholds?

A: Cat Trail does not maintain fixed thresholds for its portfolio or potential portfolio companies. However, in order to be seriously considered by Cat Trail for investment, a company must demonstrate growth or some unique qualities within its business space. Moreover, the prospective capital must be shown in a compelling manner to enable the company to take advantage of strategic opportunities. Of course, such opportunities are measured in terms of their ROI.

Q: What does Cat Trail consider the most important characteristic of an investment opportunity?

A: The management team. Partnering with management teams comprised of individuals who demonstrate a strategic and financial commitment to the business is critical. Such individuals must possess an active and entrepreneurial approach to running the business in both the short and long term.

Q: Does Cat Trail "force" an exit in five years?

A: No. Because we only manage our own money, Cat Trail does not face pressure from limited partners to realize investment returns within a certain timeframe. Nor does Cat Trail need to create realizations so it can raise its next fund. In other words, portfolio companies are invested and supported by Cat Trail for as long as it makes sense to do so, working with managers who share a common vision to build upon assets and opportunities.

Q: In addition to being an investor, what is Cat Trail's role with a portfolio company?

A: Cat Trail brings extensive experiences, connections, and ideas to each of its portfolio companies. These capabilities are made available to all Cat Trail portfolio companies, including investment, finance, strategy, and human resource expertise. Ensuring the success of each of its portfolio companies over the long-term is Cat Trail's operational focus.

Q: Does Cat Trail solely invest through preferred equity?

A: No. Cat Trail is flexible with respect to investment structure, investing in debt transactions (primarily bridges and senior debt) as well as both types of equity (preferred and common). The flexibility in the structure is defined by the investment's perceived ability to meet minimum return requirement measured against the associated risks. Structuring the investment involves a clear path to achieving a minimum investment return based on the risk of Cat Trail's investment.

Q: How should an effective presentation for the investment community look?