Canadian distressed manager gathers $1.5bn for fifth fund

The Catalyst Capital Group, which specialises in distressed-for-control investing, passed the $1.25 billion target for its latest fundraise.

The Catalyst Capital Group, a Canadian firm that handles distressed for control investing, has raised $1.5 billion (C$2 billion) in capital commitments for its most recent fund, Catalyst Fund Limited Partnership V. The firm surpassed its target of $1.25 billion.

The vehicle gathered capital from a diverse group of investors, including public and corporate pensions, endowments, foundations, family offices and financial institutions across the US, Europe, Canada and Asia.  

AtlanticPacific Capital served as the placement agent, while Fasken Martineau DuMoulin was the legal advisor. 

Catalyst, Canada’s second largest private equity investment manager, specialises in control and influence investments in distressed and under-valued Canadian companies. Since inception in 2002, Catalyst has deployed 90 percent of its capital into senior secured debt. Except for one trading loss in its second fund, the firm has not experienced a loss of principal capital in the last ten years, the manager said in a statement. 

“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,” said Newton Glassman, managing partner of Catalyst.