Firm: Catalyst Investors
Fund: Catalyst Investors Fund III
Target: Between $300 million and $500 million
Placement Agent: Berchwood Partners
Legal Advisor: Kirkland & Ellis
Catalyst Investors typically invests between $5 million and $30 million alongside management teams in either expansion deals, acquisitions or recapitalizations. It looks for U.S. and Canadian companies generating annual revenue ranging from $20 million to $100 million, and sometimes sponsors add-ons. Its geographic concentration is in the United States and Canada. The firm holds on to companies for between three and seven years.
Brian Rich, managing partner, anticipates making 12 to 15 deals from Fund III, over a three to five year period, doing deals of $40 million to $50 million each, assuming the fund size reaches $400 million. Prior to co-founding Catalyst Investors, Rich founded
Portfolio companies include Advantage Business Media, which has more than 20 print and online business-to-business publishing properties; Aplus.net, which offers Website services for small and mid-size businesses; Clearwire, a provider of high-speed Internet and phone services; and MDH, a data center operator.
The firm recently sold MessageLabs, a U.K.-based provider of online messaging and Web security services. It completed the $695 million sale in mid-November. MessageLabs, which generated revenue of about $145 million for the fiscal year ended July 31, had raised roughly $59 million in funding, including $36 million from Catalyst Investors and co-investor