The Catalyst Capital Group Inc. Provides Statement Regarding Recent Article by Reuters
March 23 2018 - 7:06PM
Business Wire
The Catalyst Capital Group Inc. (“Catalyst”) today provided the
statement below in response to a Reuters article discussing its
investments and track record:
We are singularly disappointed in Reuters and what is a clear
violation of their own Trust Principles. The behavior of the
reporters involved reflects an intentional disregard of the facts,
as presented to them by Catalyst and as publicly available.
Reuters has proven itself to be unobservant to the nature of
private equity and the accomplishments of our investment team and
the teams at our portfolio companies in rebuilding broken companies
and making them leading players in their sector. Our funds are
structured to be long-lived to maximize value for our investors.
Our process for valuing current investments is rigid, conservative
and has been proven out repeatedly.
We can only stand dumbfounded by the failure of Reuters to
understand the basic value creation principles required to grow
companies and the care we take to protect and maximize returns. To
select a few glaring examples, consider Gateway Casinos &
Entertainment. With Catalyst’s support, the company has already
returned over $300 million to shareholders – more than what would
have been generated through an IPO in 2012 – by taking smart
actions, including three debt recapitalizations, unlocking value
from real estate and achieving superior operating results, with
EBITDA increasing many fold since 2012, which has allowed the
enterprise value of Gateway to grow exponentially. Much of this is
available in the public domain and was brought to the attention of
Reuters and was intentionally ignored.
We are equally dumbfounded that Reuters doesn’t understand, or
care to understand, the nature of biotech companies and how they
are valued on a pre-commercial basis. In fact, we expect that
Therapure Biopharma’s potential financings, which we believe
Reuters was aware of, will be supported by the sector’s leading
underwriters. The valuation noted by Reuters and its supposedly
knowledgeable sources is utterly ridiculous.
It is also incomprehensible that Reuters could distort an
informational disclosure to our investors regarding litigation
claims and try to portray it as included in Catalyst’s audited
financial statements. That has never been the case. This
questionable behavior is unfortunate and a good basis for why the
UK High Court restricted Reuters from disclosing Brevan Howard
Asset Management’s confidential information to prevent its
misuse.
This lack of effort, understanding and dedication to the facts
is unsettling given the platform upon which Reuters operates. For
Catalyst and its stakeholders, our focus is on continuing to
generate the results we believe are achievable.
About The Catalyst Capital Group Inc.
The Catalyst Capital Group Inc., a private equity investment
firm with more than $6 billion in assets under management founded
in 2002, is a leader in operationally focused turnaround investing.
The firm's mandate is to manufacture risk adjusted returns, in
keeping with its philosophy of "we buy what we can build."
Catalyst's Guiding Principles of investment excellence through
operational involvement, superior analytics, attention to detail,
intellectual curiosity, team and reputation are key to the firm's
success. The Catalyst team collectively possesses more than 110
years of extensive experience in restructuring, credit markets and
merchant and investment banking in Canada, the United States, Latin
America and Europe. For more information, please visit
www.catcapital.com.
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MediaGagnier CommunicationsDan Gagnier,
+1-646-569-5897dg@gagnierfc.com