Issue link: http://endeavor.uberflip.com/i/772917
page 107 How does Endeavor Catalyst II work? 1) Limited Partners invest in Endeavor Catalyst II in one of two ways: philanthropic capital, with 100% of profits donated to Endeavor, or invested capital, with profits split 50/50. 2) Endeavor Catalyst II follows a rules-based, passive co-investment approach. The Fund invests in Endeavor Entrepreneurs raising a minimum of $5MM of equity capital, in a single round of financing, led by a qualified, institutional investor. 3) The Endeavor Catalyst Committee, made up of Nick Beim (Partner, Venrock), Reid Hoffman (Co-Founder & Executive Chairman, LinkedIn and Partner, Greylock), Bill McGlashan (Founding Partner, TPG Growth), and Joanna Rees (Managing Partner, West) reviews each investment and ensures compliance with the stated criteria. 4) Returns are distributed on a investment-by-investment basis. As returns are realized, principal plus 50% of the profits are distributed to the Limited Partner, and 50% is distributed to Endeavor. An individual or institutional LP invests in Endeavor Catalyst II. The Fund invests that capital from 2017–2021 (over ~4 years). The Fund expects to hold investments for 4–8 years, forecasting returns in 2021–2029. Upon an exit event, individual LPs receive a check—and Endeavor Global and Local Offices also receive a check.