We are the family office of the firm’s CEO. Cathexis’ organizational structure and permanent capital base provides significant advantages, including strong alignment with management teams, a long-term investment horizon, the ability to move quickly, and flexibility with transaction structures.
Business Philosophy
Given the permanent nature of our capital, we view the optimal hold period for a growing, profitable business to be forever. We believe a hold forever philosophy is in the best interests of our companies, as it allows management and ownership to ignore short term noise and focus on making investments which will strengthen a business’ competitive position 10+ years into the future. Our ambition for each portfolio company is that with a long-term oriented decision-making mindset and a shared penchant by management and ownership to take smart risks, we will be able to achieve exceptional rates of long-term sustainable growth.
Although our ideal hold period is forever, we recognize that many great operators prefer to build and sell businesses, and we are excited to partner with these operators and entrepreneurs as well. Our principal goal is to be good partners with everyone that we do business with. We strive to keep it simple, be straightforward, and be the business partner of choice.
We believe in letting a good CEO run their business with autonomy. If they want advice, we are happy to provide it. But in most circumstances, if you have a good business with a good management team, what we bring is an encouragement to think big, be ambitious, and be tolerant of taking smart risk. We bring a strong balance sheet with significant liquidity which allows companies to strike when they see opportunities which before our ownership they may never have considered pursuing. We encourage our companies to invest for the long term and not worry about the short-term impact that investments/smart experiments can have on earnings.
Given that we are owned by a single individual, we are extremely nimble, with no boards or committees and the ability to make decisions quickly. We can be highly creative and take risks that are not down the center of the fairway for most investment firms.
We are patient, we wait for “the stars to align” and when they do we like to swing big. We get excited about deals with strong economics, great management teams, and reasonable valuations.
Contact
ContactUs@Cathexis.com
➤ Office LOCATIONS
HOUSTON: 1000 Louisiana Street, Suite 7000, Houston, TX 77002
BOSTON: 302 Walnut Street, Newtonville, MA 02460
☎ PHONE NUMBERS
Phone: (713) 400-3334
Fax: (713) 400-3365
Investing Overview
Investment Size
We are a generalist firm with professionals who have experience in a wide variety of industries. Generally, our equity commitments range from a low of $3mm when funding niche high EV deals, to more than $100mm+ when buying established companies or financing the development of infrastructure / real estate.
Private Equity
We have had success with our acquisitions and our team is actively looking for more businesses to acquire. Our criteria is not sector dependent, but is instead dependent on finding businesses which earn high returns on tangible assets, preferably have strong management in place, and will transact at reasonable valuations.
Venture
In the first half of 2018, we began to fund early stage VC deals, as we wade into this new sector, our seed stage equity commitments are ranging from $100k to $1mm. In seed deals which end up having exceptionally high growth trajectories, we will consider investing up to 8 figures in follow on rounds.
Real Estate
We have a national portfolio of real estate projects where we participate as co-general partners with real estate development firms. We provide pre-development capital/completion guarantees/GP co-invest capital, in exchange for a share of the promoted general partnership economics.
Operating Companies
In 2016 we took private ISG PLC, a ~£2bil revenue General Contractor headquartered in the UK with additional operations in Continental Europe, Asia, and the Middle East.
In 2015 we acquired Hickory Farms, a specialty foods company based in Chicago.
Energy
We are a large owner of fee minerals in South Texas. These minerals are within the Eagle Ford Shale trend. We participate in the economics of these tracts via royalties and non-operated working interests.