IOS specialist Catalyst Investment Partners closes oversubscribed third fund

February 2026

Greg Dool - PERE

Industrial outdoor storage specialist Catalyst Investment Partners has closed its third real estate fund at its hard-cap of $400 million, PERE can reveal, after a seven-month fundraise in which the firm said investor demand “substantially” outstripped the vehicle’s capacity.

With backing from a mix of pension funds, endowments, foundations and family offices, the fund

surpassed its $300 million target and was met with sufficient interest from investors that could have taken it well beyond its $400 million cap, said Catalyst co-founders Dan Haroun and Max Heiden.

“The oversubscription of Fund III underscores the growing recognition of IOS as a durable real estate asset class and our highly differentiated approach to the sector,” Heiden said in a statement.

The fund is more than twice the size of its predecessor, Catalyst IOS Fund II, which the manager closed on $187 million in commitments in March 2024, per PERE data. The firm mainly focuses on supply-constrained East Coast markets along the dense Interstate 95 corridor, targeting value-add to opportunistic returns from its funds.

Spanning just seven months, the fundraise for its third effort was swift relative to most closed-end real

estate vehicles. The average real estate fund that reached a final close in 2025 spent more than two years in the market, according to PERE’s Full-Year 2025 fundraising report.

The fund also comes at a time when the industrial outdoor storage sector is the subject of broadening

appeal from institutional investors as an outperforming segment of the US industrial real estate market.

Just last week, Brookfield Asset Management said it had struck a deal to acquire listed REIT Peakstone

Realty and its 76-asset portfolio of primarily IOS properties for $1.2 billion in cash.

Formed in 2021 by Haroun and Heiden – former colleagues on the acquisitions team at real estate

investment trust SL Green – Catalyst has amassed a portfolio of 140 industrial outdoor storage properties across the US and has about $1 billion in assets under management, according to its website.

The capital raised for Fund III will help it scale its portfolio to more than 250 sites and $1.5 billion in gross asset value, the firm said. Chicago-based Incubation Capital Partners* served as Catalyst’s placement agent for the fundraise.

“As capital continues to form around the sector, Catalyst is well-positioned to take advantage of the

opportunity,” Haroun added in the statement.

*Securities offered through Frontier Solutions LLC, an SEC-registered broker-dealer, member FINRA and SIPC