General Catalyst, a prominent venture capital firm, has undergone significant changes in recent months, including the departure of three key investors, TechCrunch has learned. The firm, which manages $32 billion in assets, has been evolving its strategy, expanding beyond venture capital and exploring new business lines, including wealth management and healthcare.

The departed managing directors include Deep Nishar and Kyle Doherty, who co-led General Catalyst's late-stage strategy known as Endurance, and Adam Valkin, one of the three leads of the firm's early-stage fund. The reasons for their departures remain unclear, but sources close to the firm suggest that the changes are part of a broader transformation effort.

General Catalyst has been undergoing significant changes since its merger with European early-stage firm La Famiglia in October 2023. As part of the merger, Jeannette zu Fürstenberg, La Famiglia's founder, was appointed as one of the firm's top senior partners. The firm also acquired Indian VC firm Venture Highway, placing its founder, Neeraj Arora, among the top senior investors at the firm.

Individuals close to General Catalyst have also revealed that the firm's strategic shift has influenced how investors are compensated. The firm has shifted its compensation structure to favor cash bonuses over equity, a move that may have contributed to the departures of Nishar, Doherty, and Valkin.

Deep Nishar, a former LinkedIn executive, joined General Catalyst from SoftBank's Vision Fund in 2021. During his tenure, he led deals into Slack and 10X Genomics. Kyle Doherty, who joined General Catalyst in 2017, invested in digital banking startup Step and insurance company Ethos. Adam Valkin, who began his tenure with the firm in 2013, serves on the board of Rapyd, a fintech startup reportedly raising capital at a steep valuation drop of $3.5 billion, and Shift Technology, a fintech that last raised funding in 2021 at a valuation of over $1 billion.

The departures come at a time when General Catalyst is rumored to be considering an initial public offering (IPO). Axios reported on Friday that the firm is in the "very early stages of considering" a public offering. The firm's expansion into new business lines and its shift away from a traditional partnership-model firm may be indicative of its desire to go public.

The changes at General Catalyst reflect the evolving landscape of the venture capital industry, where firms are increasingly looking to diversify their strategies and expand into new areas. As the firm continues to evolve, it remains to be seen how these changes will impact its investment strategy and its position in the market.

General Catalyst declined to comment on the departures, and Nishar, Doherty, and Valkin did not respond to requests for comment. However, the firm's limited partners and sources close to the firm have provided insight into the changes underway at the firm.

As General Catalyst continues to navigate its transformation, the venture capital industry will be watching closely to see how the firm's new strategy unfolds. With its significant assets under management and its expanding business lines, General Catalyst is poised to play a major role in shaping the future of the industry.