Frank Quattrone Launches Qatalyst (CS, GS, GOOG, JMP)

If you have been around the markets for a decade you’ll know the name Frank Quattrone quite well.  Quattrone was one of the most influential investment bankers in the 1990’s who also became the head of Credits Suisse’s technology banking group.  He was nearly destroyed in one of the great Wall Street scandals in obstructing the investigation over brokerage firms giving shares in hot IPO’s to great clients for higher commissions, in which he was ultimately vindicated.

Frank Quattrone has just announced that he is launching Qatalyst Group, a new technology boutique being launched with former colleagues.  Qatalyst will be a technology-focused merchant banking boutique that is to be headquartered in San Francisco, CA.  This is being noted as Qatalyst Capital and Qatalyst Partners.

Qatalyst Partners is its investment banking business, and it will provide high-end M&A and corporate finance advice to technology companies. Qatalyst Capital Partners is its investing business and it will make selective principal investments, typically alongside leading venture capital and private equity firms.  Qatalyst Partners noted that it will provide "high quality, independent advice to the senior management teams and boards of the technology industry’s established and emerging leaders on strategic matters crucial to their growth and success."  While it will not engage in public securities research, sales, trading or brokerage, Qatalyst Partners may participate as advisor or underwriter in clients’ public offerings. 

This will combine a broad network of relationships with deep sector knowledge and seasoned M&A expertise. In addition to merger & acquisition advice, Qatalyst Partners will also advise companies on capital structure and capital raising alternatives, and will selectively raise private capital for clients. 

Eric Schmidt of Google (NASDAQ: GOOG) noted, "….I look forward to working with him again and am very enthusiastic about Qatalyst’s prospects for success."

It looks like this cadre is mostly from Goldman Sachs (NYSE: GS) and Credit Suisse Group (NYSE: CS).  Qatalyst’s initial founders include:

• Jonathan Turner, a technology M&A expert, formerly Global Head of Credit Suisse’s Internet group and most recently served as Vice President of Corporate Development for online marketing leader QuinStreet;
• Adrian E. Dollard, formerly General Counsel of Credit Suisse’s Technology group and a lawyer at Shearman & Sterling specializing in M&A, corporate finance and venture capital;
• Neil Chalasani, most recently a Vice President with Evercore’s Technology, Media & Telecom group;
• and will include Brian Slingerland, most recently a Vice President with Goldman, Sachs’ Technology Media & Telecom group;
• and Brian Cayne, most recently an Associate at Vista Equity Partners.

Qatalyst Partners has submitted an application for registration as a broker-dealer with the SEC and has applied for membership in FINRA.  During the approval pending process, Qatalyst will operate as a division of JMP Securities so that they can begin to advise clients immediately.  JMP Securities is part of JMP Group (NYSE: JMP).

It looks like Wall Street just got a new technology boutique that will be involved in venture capital, private equity, and bringing companies public. 

Jon C. Ogg
March 18, 2008