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Catalyst Investors Closes Fund III with $213M

Catalyst Investors has held a final close of its third and largest fund fund, Catalyst Investors III, L.P., with total commitments of $213 million. The firm says it will continue its strategy of investing in lower middle-market cloud computing, wireless infrastructure and digital media companies. Limited partners in the fund include Pathway Capital Management, Healthcare of Ontario Pension Plan, Massachusetts Pension Reserves Investment Management and Liberty Mutual Insurance.

PRESS RELEASE

Catalyst Investors, a growth equity firm focused on investments in technology-enabled services, today announced the final closing of the firm’s third fund, Catalyst Investors III, LP, with total commitments of $213 million – the firm’s largest fund to date. Consistent with its strategy in recent funds, Catalyst expects to continue investing in high-growth, lower middle-market cloud computing, wireless infrastructure and digital media companies.

 

“Catalyst’s cohesive team, proven track record, cogent strategy and commitment to transparency enabled us to attract a number of highly-regarded institutional investors new to our firm,” said Gene Wolfson, partner with Catalyst Investors and head of the firm’s investor relations and business development.

 

New investors in Fund III include Pathway Capital Management, Healthcare of Ontario Pension Plan (HOOPP), Massachusetts Pension Reserves Investment Management and Liberty Mutual Insurance.

 

“The investor base of our earlier funds was comprised primarily of financial institutions – mostly repeat investors with whom we had a long history,” said Brian Rich, co-founder and managing partner of Catalyst Investors. “Due to the Volcker Rule, certain significant investors were restricted from participating in Catalyst Fund III. This successful close is a testament to our ability to attract new institutional investors. We look forward to investing this new fund and helping talented management teams grow their companies.”

 

About Catalyst Investors

New York-based Catalyst Investors is a growth equity firm focused on technology-enabled services including cloud computing, wireless infrastructure and digital media. Catalyst was founded in 2000 and is investing its third fund. A proactive investor, the firm draws on its extensive industry expertise to work in true partnership with management to build long-term value. Past and present Catalyst portfolio companies include Aloha Partners – acquired by AT&T (NYSE:T); Denali Spectrum – acquired by Leap Wireless (NASDAQ:LEAP); InSite Wireless Group; Latisys; MessageLabs – acquired by Symantec (NASDAQ:SYMC); MediaMath; MINDBODY; Nine Systems – acquired by Akamai Technologies (NASDAQ:AKAM); WeddingWire; and Xplornet.