Catalyst Opportunity Funds has announced the closing of a $140 million fund that will help finance affordable and workforce housing developments.
Catalyst Opportunity Fund II raised capital from institutional investors 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, said the firm.
Fund II is primarily focused on investing in housing developments that serve households earning 60% to 80% of the area median income—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 latest fund has been deployed into eight real estate investments across strategic U.S. markets, according to Catalyst, a real estate investment platform focused on impactful investments in historically underserved markets. It has been concentrating on ground-up development.
Three of the new developments are operational and serving their regions: Metropolitan Village, a 198-unit community in Winston-Salem, North Carolina, by Liberty Atlantic Development Partners; The Eden, a 235-unit development in Los Angeles by Bridger Land Group; and The Moraine, a 160-unit development in Seattle by Ethos Development.
