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Catalyst closes $170m funds below target

Catalyst Investors has closed its second buyout fund and a UK co-investment vehicle on $170 million, below their initial target of $250 million.

New York-based, media-focussed firm Catalyst Investors has closed a buyout fund, Catalyst Investors II, and a UK co-investment fund, Catalyst UK Partners, on a total of $170 million (€124 million). Although the firm did not disclose how much capital is allocated to each fund, the funds closed below their initial combined target of $250 million.

The two funds held a first close in November 2005, and then started a second round of fundraising in August 2006. The firm ultimately decided to close the funds before they hit their targets for the sake of speed, said managing partner Brian Rich.

“With a fund of our size and scale, we wanted to close it out and put the money to work,” Rich told PEO.

Rich said upwards of 90 percent of the firm’s existing investors committed capital to Catalyst’s latest funds, for which Berchwood Partners was placement agent.

Catalyst Investors II will invest in between 10 and 15 companies and will continue to target companies in the media, telecommunications and related internet services sectors. Catalyst UK Partners has already deployed its capital for a single target, whose identity was not disclosed.

The buyout fund is about 30 percent invested, Rich said. It has made four investments to date: Advantage Business Media, internet business services provider Aplus.net, wireless systems operator Denali Spectrum Manager, and broadband network operator Oneida Broadband. Although Catalyst did not release the terms of each deal, Rich said all four were valued at between $10 million and $20 million.

Catalyst’s debut fund closed on $110 million in 2000.