NEW YORK--(BUSINESS WIRE)--Catalyze, a national platform providing Capital Entrepreneurs with support and capital to build enduring firms, announced the launch of the inaugural GP Runway Fund today. The Fund will extend flexible working capital loans to U.S.-based underrepresented and innovative investors raising funds one through three. Spring Point Partners, Gary Community Ventures, and Blue Haven Initiative will anchor the Fund, and Catalyze will continue to raise third-party capital to invest in an attractive pipeline of emerging firms across private markets.
Built on the thesis that new investors are founders—or Capital Entrepreneurs—who can build enduring firms if given access to capital, networks, and resources, Catalyze works to reduce barriers to entry that impede new fund formation and restrict the flow of capital. With GP Runway Fund, the team aims to address the personal finance challenge that can keep talented investors from achieving success.
Catalyze began supporting Capital Entrepreneurs in 2022 through their annual Fund Fellowship, which provides first-time, underrepresented fund managers with operating support to accelerate their fund formation and firm building. Fellows cited the high formation and operational costs, at least $150k, of launching a new investment firm and the lack of startup financing as significant barriers to achieving scale and sustainability. Currently underserved by banks, new fund managers cover these costs out of pocket or through high-cost options such as credit cards, debt with personal guarantees, or equity stakes.
“We heard from over 100 Capital Entrepreneurs who were struggling to bootstrap their investment firm and needed access to flexible and affordable working capital. Catalyze co-designed the working capital loan product, alongside Capital Entrepreneurs, to provide a solution to bridge financing gaps for this amazing community,” said Brendan Cosgrove of Catalyze.
Catalyze backs Capital Entrepreneurs—primarily smaller, newer managers raising funds up to $250 million— to expand and innovate on the capital available for founder communities that have historically been excluded from the funding ecosystem. Catalyze has partnered with mission-driven investors to increase representation within asset management and, in turn, grow investments in untapped opportunities that are aligned with wider U.S. demographics.
“The team at Catalyze has repeatedly demonstrated their unwavering commitment to supporting underrepresented Capital Entrepreneurs over the past several years. Through their determined work, they have developed a deep and trusted network among fund managers and investors as well as a strategic and actionable solution set. We are excited to support their launch of the GP Runway Fund to deliver critical resources and empower innovative investors to break through barriers and build lasting, impactful firms," said Margot Kane, Chief Investment Officer of Spring Point Partners.
"We are thrilled to invest in the GP Runway Fund, as it represents a critical opportunity to not only establish pathways for more underrepresented and innovative managers to build wealth, but also to have a direct influence on how capital is allocated in markets and communities. This Fund is a vital step toward creating a more inclusive investable landscape, and we’re excited to be part of this journey," said Catherine Toner of Gary Community Ventures.
The team will evaluate prospective borrowers alongside a participatory investment committee which includes Wayee Chu from Reach Capital, Samara Hernandez from Chingona Ventures, Richard Kerby from Field Ventures, and Sean Mendy from Westbound Equity Partners. "We intentionally recruited Investment Committee members who could help us identify and guide talented Capital Entrepreneurs in building an institutional-quality firm because each of them have walked in those shoes before. They've blazed a trail that the next generation of investors aspire to follow and we're thrilled to have their support and partnership," said Maegan Moore of Catalyze.
To learn more about GP Runway Fund visit: https://catalyze.community/capital-solutions.
About Catalyze
Catalyze is a national platform providing Capital Entrepreneurs—underrepresented & innovative investors—with capital and support needed to build enduring firms. Founded in 2022, Catalyze leads three strategies to better serve the Capital Entrepreneur ecosystem: Fund Fellowship program for first-time, underrepresented fund managers, Capital Solutions to bridge financing gaps, and Due Diligence & Consulting services for LPs backing smaller, newer fund managers. For more information, visit www.catalyze.community.
