The Catalyst Capital Group has received more than USD1.5 billion (CAD2.0 billion) in capital commitments to its most recent fund, Catalyst Fund Limited Partnership V, surpassing its target of USD1.25 billion and its hard cap of USD1.5 billion.
Fund V, which was oversubscribed, received strong backing from a diverse group of investors, including public and corporate pensions, university endowments, foundations, family offices, and financial institutions located across the US, Europe, Canada and Asia. AtlanticPacific Capital served as global placement agent, and Fasken Martineau DuMoulin LLP served as legal advisor.
Catalyst, Canada's second-largest private equity investment management firm, specialises in control and influence investments in distressed and under-valued Canadian situations. Since inception in 2002, Catalyst has generated exceptional returns with more than 90% of its capital deployed in senior secured debt and, aside from a single trading loss in its second fund, has not experienced a loss of principal capital in the last ten years.
"We are deeply gratified by the confidence in Catalyst demonstrated by our limited partners," says Newton Glassman, Managing Partner of Catalyst. "Fund V took less than six months of active marketing, and was oversubscribed like all our prior funds, which highlights the performance of the Catalyst team, and the benefits to investors of our unique structure."
"Catalyst is well-positioned to execute on the growing pipeline of investment opportunities that we have been cultivating," added Gabriel de Alba, Managing Director and Partner.
Catalyst funds experience attractive j-curve mitigation by virtue of the firm's connection and relationship with Callidus Capital Corporation (TSX: CBL), a Canadian company that specialises in innovative and creative financing solutions for companies that are unable to obtain adequate financing from conventional lending institutions. Callidus is continuing to develop its market presence and being broadly viewed as the preeminent senior secured asset-based lender to primarily growth and distressed companies in Canada.
"We expect Callidus to follow the same path of success that Catalyst has experienced since its inception in 2002," says Glassman. "Callidus is fundamental to Catalyst's long-term strategy."
