Jacob Vogelstein and George Petrocheilos
Biomedical-focused investment firm Catalio Capital Management is launching a new credit strategy that will provide non-dilutive capital to companies, and brought on a pair of former portfolio managers from Baltimore-based Brown Advisory to lead it.
It’s marks the third approach to funding companies from Baltimore-based Catalio. Launched in June after R. Jacob Vogelstein and George Petrocheilos spun the firm out of Inner Harbor-based Camden Partners, Catalio draws on a network of scientists who have entrepreneurial experience.
Catalio plans to offer structured credit facilities for companies that are pre-cashflow, and have support from institutional investors. It’s a position seen in the life sciences space, as companies developing new treatments must conduct intensive research and testing to get regulatory approval before a product can reach the market. At this stage, the companies face a choice to take investment, which often requires giving up equity, or slow down growth. Banks aren’t typically an option for companies at this stage. So Catalio is looking to offer an option that will provide access to growth capital via credit with a repayment built in, and tap Catalio’s network.
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