Johnson catapulting into new business venture

FORT COLLINS – Doug Johnson is moving on from UniverCity Connections, but he plans to keep making connections in Northern Colorado with the launch of a new private equity and consulting firm.

Johnson has formed Fort Collins-based Catshot Group with two other businessmen. The trio has been working together for several months on this project and feels that Catshot fills a void for Colorado companies. Catshot plans to bring not only the financing a company might need, but also a strategic partnership that leverages the connections and networks of the firm’s founders.

Catshot Group borrows its name from catapult-assisted takeoffs from aircraft carriers.

“We provide the catalyst to catapult companies,” explained Ethan Martin, one of three managing directors at Catshot.

Martin’s private equity experience comes from leading capital and debt negotiations as a managing director for Denver Growth Partners. In that role, he also served as the CFO and chief strategy officer one of the firm’s portfolio companies. Prior to starting DGP, Martin was a vice president and principal for TeamSAI, an aviation strategy and operations consulting firm.

The new firm’s name is more fitting given the third director’s professional history. Rob Ffield recently retired as a U.S. Navy Captain, served twice as a Top Gun instructor and executive officer, and led the Blue Angels flight demonstration squadron. Most recently, he served as executive officer to the commander of NORAD and at the Pentagon as an executive officer on the staff of the Joint Chiefs.

“We’re valuable in that there is no other combination (of talents) like this,” Johnson said.

For his part, Johnson has years of experience in the financial services field, most recently First Western Trust Bank. For the past two years, he’s worked as director of UniverCity Connections – an initiative to identify opportunities between Colorado State University, downtown Fort Collins and the Poudre River. In his new venture, he’ll do much of the same.

“Our approach is a little bit unique,” Martin said.

Long-term investments

Catshot’s directors are looking to work with company owners with similar values that are willing to take their advice and experience as well as their funding. For that reason, the relationship will always start with consulting to see if Catshot can bring any value to a potential new client.

“We’re not wanting to come in and run a company,” Johnson said. “We’re coming in and looking at where we can add value.”

He added that it comes down to whether or not the Catshot directors can leverage their experience, networks and access to create opportunity. That could mean something as simple as a fresh perspective or as complicated as reaching out to and informing politicians.

“We see both (funding and consulting) as being very important,” Martin explained. “Throwing a lot of capital at a business can actually cause more harm than good. We want to make sure that all the ingredients are there for a successful business.”

Funding is a major ingredient for companies that have plateaued – and it’s not coming easily these days. According to Dow Jones Private Equity Analyst, during the third quarter 72 private equity funds raised $2.52 billion – a 70 percent decline from the same quarter last year. For the first nine months of the year, 265 funds raised $79.9 billion, down 59 percent.

Catshot has an established group of investors to tap for clients, many of which are in Colorado, as well as access to institutional investors. Martin was careful to point out that Catshot is not a venture capital firm, looking to invest in startup or early stage companies. Instead, the directors are targeting Front Range-based companies with sales of $10 million or more for long-term investments of both finances and resources.

“There is still good money for good deals,” Johnson said. “There’s no better time to get a foundation in place.”

With lending from traditional sources hard to come by and many companies struggling to just maintain forward momentum, it could be an opportune time to start offering a different type of service. Ffield likened the current economic situation to his days leading the Blue Angels. The team would review the weather forecasts for the coming shows early in the week. Ffield explained that he preferred when the forecast was less than desirable, since it could only get better.

For many business owners, a stormy forecast is the cause for stress and sometimes paralysis. Catshot Group plans to change that for its clients.

“Our number one goal is: We want to make this fun again,” Johnson said.

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