LOS ANGELES, CA – January 9, 2024 – The alternative investment landscape is welcoming a significant new player. Jason Howard, a distinguished veteran in the alternatives industry, has announced the launch of New Catalyst Strategic Partners, an independent firm meticulously designed to fuel the growth of emerging, developing, and diverse investment firms – the “Next Generation GPs.” This innovative firm arrives with substantial founding support from and in a strategic partnership with Apollo (NYSE: APO), marking a pivotal moment for the private markets sector.
New Catalyst Strategic Partners is poised to address the unique challenges faced by Next Generation GPs, offering a suite of tailored solutions designed to propel their success. The firm’s platform is structured to provide:
- Seeding New Private Market Firms: Providing crucial initial capital to launch promising new ventures in the private markets.
- Acceleration Capital for Existing Firms: Injecting growth capital into established private market firms to expedite their expansion and strategic initiatives.
- Co-Sponsoring Company Acquisitions: Partnering with Next Generation GPs in company acquisitions, leveraging shared expertise and resources for enhanced deal execution.
- Catalytic Growth Capital: Delivering targeted capital to facilitate the launch of new investment strategies, the expansion of investment teams, and other strategic growth endeavors.
The strategic alliance with Apollo, a leading global alternative asset manager, provides New Catalyst Strategic Partners with a robust foundation. Apollo’s cornerstone capital commitment and operational support are integral to enhancing value creation for both the Firm and its portfolio investments.
Jason Howard, Founder and Managing Partner of New Catalyst Strategic Partners, emphasizes the critical need for this specialized support: “Even highly experienced investors encounter considerable obstacles when establishing and scaling new investment platforms. These hurdles are often amplified for Next Generation GPs. Throughout my career, I’ve been dedicated to assisting exceptional investors in building high-performing firms. I’ve observed firsthand that traditional LP capital is frequently insufficient to enable Next Generation GPs to fully realize their potential. New Catalyst Strategic Partners is designed to be the catalyst this industry urgently needs. We are structured to deliver essential resources, strategic advice, and customized solutions that we believe will stimulate significant innovation and growth within the industry.”
Howard’s extensive background includes nearly 14 years at GCM Grosvenor and Credit Suisse, where he focused on investing in Next Generation firms. Most recently, as Managing Director and Co-Head of GCM Grosvenor’s Private Equity Diverse Manager platform, he oversaw billions in investments. He has a proven track record of identifying and supporting successful Next Generation funds from their inception, providing strategic guidance and critical early investor validation that has been pivotal to their success. His expertise has earned him recognition as a subject matter expert and a “pre-consensus” investor among numerous institutional LPs.
Joining Jason Howard in founding New Catalyst Strategic Partners are seasoned industry professionals Managing Director Demetrius Sidberry, formerly a Managing Director and Direct Equity Investment Committee Member at Hamilton Lane; and Senior Advisor and Operating Partner Scott Darby, who brings over two decades of business building experience, including senior operating roles at TPG and Vista Equity Partners. This purpose-built team possesses the deep experience, extensive networks, and collaborative approach essential for successfully executing the Firm’s ambitious strategy.
New Catalyst Strategic Partners is strategically positioned to tap into an expansive manager network, providing partner firms with readily accessible day-one capital and comprehensive support – resources often challenging for Next Generation GPs to secure independently. The Firm’s commitment extends to catalyzing growth throughout a GP’s lifecycle, offering crucial fundraising support, working capital, deal capital, best practices in portfolio management, and value creation resources. This holistic approach enables New Catalyst Strategic Partners to not only foster innovation and differentiated strategies but also to significantly enhance the success rate of a broader spectrum of GPs, from first-time funds to seasoned emerging managers raising subsequent funds.
Howard further elaborated on the Apollo partnership: “I am deeply impressed by Apollo’s dedication to expanding opportunity within our industry. I want to express my gratitude to the Apollo team for their belief in the New Catalyst Strategic Partners strategy and for leveraging their considerable resources to accelerate our launch. We are excited to continue and expand this strategic partnership.”
Apollo’s commitment as a founding supporter underscores its belief in New Catalyst Strategic Partners. Beyond the initial launch, Apollo will maintain its role as a strategic partner, with Apollo and its managed vehicles committing substantial capital to fuel New Catalyst’s growth. In addition to financial backing, Apollo will provide strategic support and resources to New Catalyst and its portfolio companies. Crucially, New Catalyst Strategic Partners operates as an independent firm, retaining full control over its investment and operational decisions, with Apollo maintaining alignment through a minority economic interest in the Firm.
Apollo Partner Bill Lewis highlighted the strategic rationale behind the partnership: “Next Generation managers represent a significant and vital segment within the GP Solutions market. Historically, these GPs have demonstrated strong performance, despite facing greater limitations in accessing growth capital. This indicates a substantial opportunity for attractive risk-adjusted returns, particularly for a platform specifically designed to address their unique needs. We believe the synergy of New Catalyst Strategic Partners’ capabilities and Apollo’s extensive resources, built over more than 30 years, will deliver a uniquely differentiated and value-added proposition to Next Generation GPs.”
Apollo Co-President Jim Zelter added context to the broader impact: “Expanding opportunity is a foundational commitment at Apollo. Our strategic relationship with New Catalyst Strategic Partners is a significant advancement for our marketplace-focused Expanding Opportunity initiatives. To date, we have committed approximately $1.6 billion under these initiatives to invest in diverse asset managers, financial institutions, and suppliers. We are enthusiastic about supporting the growth trajectory of New Catalyst Strategic Partners and its future portfolio, leveraging the breadth of our platform to empower talented managers.”
About New Catalyst Strategic Partners
New Catalyst Strategic Partners (“New Catalyst”) is an independent alternative investment firm, majority diverse-owned, founded by industry leader Jason Howard. The firm’s mission is to acquire economic and minority ownership interests in Next Generation private markets firms, equipping them with flexible, strategic capital and essential value creation resources to foster sustained growth and success. For further information, please visit www.newcatalystsp.com.
Media Contact:
TJ White
Managing Director, Sloane & Company
[email protected]
