Catalyst collects $650 mln for fifth fund

The Catalyst Capital Group Inc, a Vancouver-based private equity firm focused on distressed investing, has raised $650 million in the first close of its fifth fund. The target for Catalyst Fund Limited Partners V is $1.25 billion with a hard cap of $1.5 billion. The limited partners for Fund V include university endowments, charitable foundations, pensions plans, family offices and financial institutions. Atlantic-Pacific Capital was the fund’s placement agent.

PRESS RELEASE

TORONTO, April 20, 2015 /CNW/ – The Catalyst Capital Group Inc., a leader in distressed for control investing, is pleased to announce the first closing of its most recent fund, Catalyst Fund Limited Partnership V, with US$650 million of capital commitments from prominent university endowments, charitable foundations, pensions plans, family offices and financial institutions.

Fund V’s target is $1.25B with a hard cap of $1.5B.

Building on the success of Catalyst Fund IV which also exceeded its initial target by raising just over $1B, Catalyst Fund V has been well received in the market despite ongoing tough fundraising conditions. Nevertheless, it was strongly supported by existing investors in Catalyst’s other funds and additional new institutional investors.

Catalyst’s success is in part a reflection of its investment discipline, proprietary processes and a proven track record of more than 12 years of delivering significant risk adjusted returns. Once Fund V closes, Catalyst Capital will manage in excess of $5.7B of cash and investments and continues to be ranked by Preqin Ltd. as Canada’s best performing private equity fund manager and one of the best – if not the best – distressed for control fund managers.

Catalyst’s new fund, like all previous Catalyst funds, will focus on control and influence investing in Canada, providing operational, turnaround, financial and strategic expertise.

Newton Glassman, Managing Partner, said, “We are pleased with the progress in raising Fund V and for the faith that existing and new investors have shown in us and our strategy. As always, our team remains focused on excelling, which we define as manufacturing superior risk adjusted returns for some of North American’s most savvy investors.”

“In spite of the fact our funds continue to generate best of class absolute returns, we are particularly proud of the fact we have done so, since 2006, with over 92% of our investments in senior secured debt. The result has been private equity plus returns with risk commensurate with super senior secured debt.”

In addition to Mr. Glassman, the senior Catalyst team includes Gabriel de Alba, Managing Director and Partner, and Jim Riley, Managing Director and Chief Operating Officer.

Atlantic-Pacific Capital served as the exclusive global placement agent for the fund.

About The Catalyst Capital Group Inc.
The Catalyst Capital Group Inc., a private equity investment firm founded in June 2002, is a leader in distressed-for-control investing. The firm’s mandate is to manufacture risk adjusted returns, in keeping with its philosophy “we buy what we can build.” Catalyst’s Guiding Principles of investment excellence through superior analytics, attention to detail, intellectual curiosity, team and reputation are key to the firm’s success. The Catalyst team collectively possesses more than 100 years of experience in restructuring, credit markets and merchant and investment banking in both Canada and the United States.