Catalyst Opportunity Funds Closes Fund II at $140M With Major Banking, Healthcare Limited Partners

Business Wire

23-04-2025

SALT LAKE CITY--(BUSINESS WIRE)-- Catalyst Opportunity Funds (Catalyst), a double-bottom-line real estate investment platform focused on impactful investments in historically underserved U.S. markets, today announced the final close of Catalyst Opportunity Fund II LP ('Fund II') with total capital commitments of $140 million. The close brings Catalyst's total assets under management to $350 million, representing more than $1.3 billion in project costs across its portfolio.
Fund II raised capital from a base of prominent institutional investors, including JPMorganChase, UnitedHealth Group, American Express, and KeyBank, as well as foundations, family offices, and other mission-aligned capital partners. The strong investor participation underscores growing institutional demand for attractive market-rate, socially responsible real estate investment opportunities – even amid broader market fundraising challenges.
Unlike many comparable investment strategies that focus on preserving existing affordable housing through acquisition and renovations, Catalyst is expanding the nation's housing stock through ground-up development, directly addressing the estimated 5.5-million-unit shortage of new construction. By bringing new workforce and affordable housing units online, Catalyst targets the root cause of the supply-demand imbalance that has exacerbated housing affordability challenges nationwide.
Fund II is primarily focused on investing in workforce and affordable housing developments that serve households earning 60-80% of area median income (AMI) – a segment often referred to as 'the missing middle.' This group includes working families and individuals who earn too much to qualify for traditional affordable housing subsidies, but still struggle with rising housing costs in high-growth markets. In addition to housing, Fund II also invests in mixed-use developments and commercial spaces that provide essential services, further strengthening the economic and social fabric of these communities.
'The successful close of Fund II demonstrates that institutional investors continue to see value in well-executed impact investment strategies,' said Jeremy Keele, Co-Founder and Managing Partner at Catalyst Opportunity Funds. 'We are grateful for the confidence of our new and returning partners, and we remain committed to deploying this capital into transformative real estate projects that create lasting financial and social benefits in the neighborhoods we serve.'
Fund II has already been deployed into eight real estate investments across strategic U.S. markets. Three of these developments – Metropolitan Village, The Eden, and The Moraine – are now operational and delivering impact in the regions they serve. Metropolitan Village was honored with the 2024 CoStar Impact Award for Multifamily Development of the Year in Greensboro and Winston-Salem, North Carolina, and The Moraine was recently recognized with CoStar's 2025 Impact Award as Multifamily Development of the Year in Seattle. These awards underscore Catalyst's commitment to expanding access to high-quality housing in underserved communities.
Catalyst's investment strategy prioritizes data-driven, locally responsive development, with first-floor commercial spaces in many projects dedicated to essential businesses and service-oriented tenants, creating a "housing-plus" model that enhances economic and social stability for residents. The firm also prioritizes working with local developers, helping to keep investment within the community while supporting greater opportunity. Together, this approach advances strong market-rate performance, long-term investor outcomes, and measurable social benefits.
Investor Perspectives on Fund II
'Investing in workforce housing is critical to addressing the widening housing affordability gap across the country,' said Diana Kolar Leach, Executive Director – Head of Fund Investing, Impact Finance & Advisory at JPMorganChase. 'Catalyst's community-first approach aligns with our commitment to supporting scalable solutions that not only expand access to quality housing but also invest in commercial spaces that strengthen communities and drive long-term economic resilience, all while delivering strong financial outcomes.'
'Access to stable, quality housing is a critical social driver of health,' said Courtney Mattson, Vice President, Assistant Treasurer at UnitedHealth Group. 'At UnitedHealth Group, we recognize the deep connection between housing and health outcomes. This investment expands access to affordable housing while fostering healthier communities – ensuring individuals and families have the stability needed for improved well-being and financial security.'
'Catalyst's mission to expand the supply of affordable housing and activate commercial spaces for underserved communities aligns with our goal of investing capital to help families and businesses in underserved communities thrive,' said Celia Smoot, Senior Vice President at KeyBank. 'Affordable housing is a cornerstone of economic opportunity, and everyone deserves to live and work in a community that supports their aspirations.'
About Catalyst:
Catalyst is a double bottom-line private equity firm focused on transformative real estate investments in high potential, but historically underserved U.S. markets. With over $1.3B worth of total real estate across the U.S., Catalyst invests in impactful, market-rate-return-oriented development projects led by community-driven developers, with a primary focus on workforce affordable housing. In addition to providing new, affordable housing units, Catalyst works to facilitate an influx of community services tailored to the needs of each investment community, including preventative healthcare, workforce training, and healthy, nutritious food. Institutional investment expertise, relationships with qualified sponsors in high-growth secondary markets, as well as significant experience in the structuring of creative capital stacks give Catalyst a competitive advantage in delivering long-term value creation to investors, as well as positive outcomes within communities. For more information, please visit www.catalystimpact.com.