Axios reports General Catalyst is exploring an initial public offering that would make it the first American venture firm to go public, following a path Blackstone paved for private equity nearly two decades ago.
It’s still early in the process; no decision has been made, nor have any bankers been engaged. Even so, it’s a big jump for the Cambridge-based firm, which has grown to manage a combined $32 billion across its various strategies.
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Those strategies have moved well beyond General Catalyst’s venture roots. The firm now has operations across growth, mature roll-ups/buyout, wealth management, fund-of-funds, and a tech advisory offering.
The broad diversification lines up with possible public company aspirations and mirrors preparations made by many managers who have gone before.
With future public shareholders principally focused on fee-generating assets under management, aggressive expansion into non-core strategies helps build the asset base and keep it growing.
In the background, General Catalyst has also been making adjustments to its ownership structure.
Back in 2018, General Catalyst sold a stake in the firm to Petershill Partners (then part of Goldman Sachs) for $200 million. In January, Petershill announced that it was selling the position for $726 million, and, shortly after, Axios cited unnamed sources who said that General Catalyst was itself the buyer.
The firm reportedly financed the purchase in part through proceeds from separate stake sales tied to its nascent tech and AI advisory unit.
In a strategy rolled out last year, General Catalyst is pursuing partnerships with legacy corporates looking for help with large-scale tech transformations. Part of the deal in such arrangements includes the aforementioned purchase of a stake in General Catalyst’s holding company.
Looking forward: At this stage, there’s no timeline for a possible listing, but plans could become more concrete as the year progresses.