Growth Catalyst Partners Makes Altvia a Foundation of Their Success

Growth Catalyst Partners Overview

Location: Chicago, Illinois
Investor Type: Private Equity
Investment Stage: Growth Equity
Founded: 2015
# of Employees: 10

Partnership Summary

Implementation: 2017
Product list: AIM, AIM Inbox, Investor Correspond, ShareSecure
# of Altvia Users: 4

GCP Relies on Altvia From the Start to Ensure Rapid Access to Key Conversation Details and Secure Sharing of Information With Stakeholders

About Growth Catalyst Partners

Founded by Jim TenBroek and Scott Peters, with operations in Chicago, IL, and Rowayton, CT, Growth Catalyst Partners (GCP) is a middle-market private equity firm that invests in the information, marketing, and tech-enabled service businesses. Its principals have more than 70 years combined experience investing in and managing over 250 mergers and acquisitions in its target sectors. GCP offers strategic expertise to help portfolio companies and limited partners create value.

The firm targets companies in sectors with strong growth potential through both organic initiatives and strategic acquisitions, partnering with existing management teams to deliver positive results. GCP has twn platform investments comprising over 50 acquisitions.

The Challenge

Connor Dawson is a managing director at GCP. He joined the firm in January 2018 after having spent four years at Wind Point Partners. There, he was responsible for sourcing, executing, and managing private equity investments, and assisted in the execution of three platforms and nine add-on acquisitions while managing five investments.

Having used Altvia at Wind Point Partners, Dawson was confident that it could help GCP, and the firm began using the solution from Day 1. With that decision made, the only real “challenge” GCP had was deciding how best to utilize all of the functionality in the different system components that they chose to use.

He goes on to say that before the firm began truly capitalizing on Altvia’s capabilities, they were sending out information via email and having to field individual replies coming back. “It was a mess,” he says. “Not to mention that it wasn’t secure. The fact that Altvia solutions are secure with an intuitive interface works out really well for us.”

As a newer firm, GCP is continually fundraising and then looking for the best ways to put that capital to work. The ability to access information across funds is vital.

How did conversations with a stakeholder go in the first fund?  What did they commit to in that fund? If they didn’t commit, why not? Dawson says that being able to find answers to those and other questions quickly and use that information when interacting with LPs was essential as the firm got up and running with Altvia.

The Solution

“Having a PE-focused CRM has been really great for us,” Dawson says. “We’re constantly communicating with our network of executives, service providers like accounting firms, lawyers, etc. So, keeping track of different conversations and monitoring our pipeline and prospects is extremely important for us.”

He goes on to explain that one of the biggest advantages that Altvia provides on the sourcing side is serving as an efficient and transparent platform where team members can log notes in real-time, call them up as needed, and quickly understand how others in the firm have been interacting with a stakeholder. GCP also uses the ShareSecure LP portal both for communications with LPs and as their fund data room.

“Overall, with Altvia it’s much easier to understand what our firm’s been doing in a particular space, and we’re much better educated and credible as a result,” Dawson says. “The efficiency with which we’re able to prepare for direct conversations with management teams and owners is very valuable to us. We wouldn’t have that capability without a platform like Altvia.”

In terms of pipeline management, Dawson has observed two main benefits from using Altvia. The first is tracking pipelines from a fundraising perspective and monitoring general deal activity. The second is that GCP creates what they call a “market map”, and use Altvia to store information on all the opportunities included on that map that fit the thesis they’ve developed. The data is then used to drive outreach efforts. 

What advice would Dawson give to his peers regarding technology and the role it can play in a firm’s success? First and foremost, he says, “Invest in a purpose-built solution early. You need to make an effort to really understand how the platform works and all that it offers, and then encourage firmwide adoption. The more people that use the tool, the more powerful it is for everyone.”

A traditional crm was built for general ‘customer’ scenarios

Software platforms have made the world a better place by making work a better place. Indeed the world is better off when people enjoy their jobs even marginally more, and workplace applications on big CRM platforms like have done that and much more.

But the potential that platforms like these offer presents diminishing returns: once the platform provider has engineered too many industry specific components into its platform, its usefulness for other industries begins to be threatened, and with that so do the usefulness of the component tools built into the platform.

So it is with the CRM category that has defined: it is generic enough to work for many industries, and yet still offers the potential for others to round off the edges and nail more vertically-oriented and extremely tailored software solutions.

Private capital markets are actually a great demonstration of this dynamic. Where generic CRM platforms simplify — appropriately so — to assume there’s a business, a customer, a sale, and service of that customer, there are a few industry-specific pieces that are missing.

Take for example, that investors become customers by investing through legal entities the GP raises. It’s a subtle but important nuance that just doesn’t make sense at a platform-as-a-service level (because it’s overly complicated for a simple one-time sale that many industries require), but which can easily be added without 10 years or software engineering. Once provided, the rest of the platform’s components become tremendously powerful again and you’re set to take over the world.

As a traditional CRM in our pillars methodology, these nuances must be present to properly account for investors in these legal entities, potential target companies and which are owned by these entities, the context of all interactions with these parties (as well as the appropriate overlap, ie co-investments), and how you’re arriving at finding these opportunities on both sides of the equation, such that you’re able to piece together what’s effective and what’s not. Not just because we say so, but because these are the very relationships and data that are key to the motivation behind a CRM in any industry.

It’s critical, too, that the valuable publicly-available information that helps to enrich CRM systems and save users painful steps of entering it themselves is fully-integrated at the platform level.

Again, look no further than the 3,000+ pre-built integrations that — the creator of the CRM platform concept — has at a platform level to do so, and which only exists by way of holding just short of overly-specifying certain industry workflows that would present challenges to properly integrate.

Stakeholder reporting and communication (investor relations) draws on a range of datasets

The traditional “customer service” model of CRM systems once again makes overly-simplified assumptions about the customer relationship when applied to private capital markets.

In fifteen years I personally have yet to hear the terms “warranty” or “service call” in this market because it’s just not the same. But make no mistake, as uncomfortable as it may be to say aloud, customer service is more important now than ever and it’s constantly happening; the industry is, after all, considered to be a financial “service”.

As it turns out, that service is primarily information-based — it’s driven by data and takes the form of reports and analysis that drive decisions, and then end up again in investor-facing reports and analysis.

The foundational elements of a private capital markets CRM must be built such that they accommodate this data (like we discussed above), but so too that it can accommodate additional supporting data that investors (customers!) need in the context of service.

Oftentimes this supporting data — financial metrics and time-based values, for example — is believed not to meet the traditional definition of CRM and the natural thought is “well, better do this in Excel!”.

While I happen to believe Excel is still the greatest software application ever built, its introduction to this value chain we’ve discussed herein actually creates the problem many firms suffer from: key data needed to provide customer service (again: effectively the entirety of a firm’s reports and analysis) is now in disparate systems and detached.

Both of those dynamics are important and distinct: not only is this supplemental data disparate, but when brought together there is no logical association that can be made between the two data sets.

Allow me, then, to make the point very simply: not only can this financial and time-based value data (you may be thinking about is as “portfolio monitoring” or “accounting”) be a part of a CRM, it is arguably the most important part of a CRM because it’s at the core of what providing service to the customer entails — information that comes out of data!

Firms need a digital method to engage stakeholders (ie investor portals)

Investor portals are not new; in fact, for many of us — including myself — they conjure up horrifying nightmares in which we’re aimlessly guessing at folders to find the newest document we need.

So in lies the opportunity: not only have the portals we’ve come to hate not simplified the process of acquiring information, they’ve failed to create an entirely new experience that is “customer service” driven.

To be fair, this is not a B2C market where you’d be long out of business for not having focused on customer service and thus the customer’s technology-driven experience. But don’t expect to be around too much longer if you aren’t thinking about this shift.

Today’s institutional investors increasingly expect this same consumer-like experience, and a massive opportunity is being missed by not providing it. It’s not about providing them the experience they desire; it’s more about the ability to measure engagement that is had in return.

Put simply: what’s keeping the market from providing this experience is the availability of the information that’s required to create the service that provides the experience.

If you’ve hung in this long, you know that by focusing on your CRM, you have the data that’s required to manage the customer relationship and the technology-driven experience through which that information is shared to create a differentiated and opportunistic customer experience.