CFSI Launches Catalyst Fund
The Center for Financial Services Innovation announced has announced the "CFSI Catalyst Fund, L.P., a private equity limited partnership created to cultivate new financial services companies and solutions focused on the underbanked."
It is unique in its exclusive focus on early growth stage companies with the potential for broad scale, near term profitability, and dramatic impact on the underbanked market segment. As with CFSI's previous investments, the Catalyst FUnd's strategy is to add value by building a syndicate of additional investors, as well as providing assistance to its portfolio companies.
Arjan Schutte, CFSI's associate director overseeing investment programs, will manage the fund. He commented, The Catalyst Fund is a unique opportunity for CFSI to influence the direction of the financial services industry while supporting our broader work. We're putting our money where our mouth is - our successful initial investments show that companies which address the long-term interests of underbanked consumers can generate material profits.
KeyBank and the Ford Foundation are the investors in the fund. KeyBank's Michael B. Griffin, Senior Vice President, Community Development Banking, said, Key is committed to developing profitable financial services products that better serve underbanked consumers. Having worked with CFSI on a variety of projects since its inception, we are confident that the Catalyst Fund will build on CFSI's already impressive track record of identifying and nurturing exciting young companies. We expect to benefit both as an investor and as a company seeking effective new solutions that serve this market.
One of CFSI's earliest investments was in CircleLending, a specialty loan adminstration company widely regarded as a market pioneer; it offers products to manage interpersonal loans between relatives, friends, and other private parties. In addition to its direct investment in the company, CFSI provided advice and support to enhance CircleLending's growth. In May 2007, Virgin USA acquired a majority stake in the company.
Asheesh Advani, CircleLending's CEO and Founder, observed, CFSI's support - both financial and strategic - helped CircleLending expand both its operations and its recognition within the financial services industry. Arjan and the entire team understand what it takes to grow an innovative business.
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