#22 - Alternative Capital from The LP Perspective with Brendan Cosgrove of Catalyze

This week features Brendan Cosgrove, Co-Founder and Director of Catalyze, a unique national nonprofit dedicated to democratizing access to LP and institutional capital networks and resources for underserved investors and GPs.  With his extensive experience guiding LPs at Cambridge Associates, and as Investment Director at the Kauffman Foundation's Capital Access Lab, Brendan brings a unique perspective to the table. In our conversation, Brendan shares insights into the challenges of introducing innovative funding methods like RBF and the importance of supporting diverse fund managers. He talks about Catalyze's Fund Fellowship program, aimed at empowering capital entrepreneurs to build investment solutions for underserved businesses. Brendan also sheds light on the long-term commitment needed to build institutional-quality investment firms and provides valuable insights into funding vehicles for impact investors. He also demystifies MRI vs PRI for foundation investors.

 

Key Takeaways

[3:13] What led Brendan to Catalyze.

[7:15] Brendan’s interest in alternative capital.

[13:43] The importance of underwritable track records and the ability to benchmark.

[17:33] Getting more institutional LPs to write those anchor checks.

[20:45] The opportunity for big foundations to step into alternative capital.

[25:00] Capital Access Lab.

[27:12] Catalyze’s approach of being an anchor for underrepresented founders.

[30:25] MRI vs. PRI.

[33:22] How Catalyze helps capital entrepreneurs.

[35:46] Catalyze’s Fund Fellowship Program.

[37:46] GP Runway fund.

[39:34] What managers learn at the Fellowship Program.

[53:09] What Brendan sees in the emerging space.

[55:09] Embracing the learning curve with innovative models.

Resources:
RBF Network
Keith’s Twitter

Keith’s Linkedin

Brendan: Catalyze | LinkedIn | Blueprint Local | Capital Access Lab