Catalyst Capital Group Inc., a Toronto-based private equity firm, plans an initial public offering of 35 percent of its unit that makes loans to companies unable to find traditional financing.
Catalyst, which has about C$3 billion ($2.7 billion) in assets under management, will own about 65 percent of asset-backed lender Callidus Capital Corp. after the share sale, according to a March 13 filing with Canadian regulators.
Toronto-based Callidus aims to sell about C$150 million to C$200 million in shares in the IPO, the Globe and Mail reported earlier. An IPO in that range would be the largest since Cardinal Energy Ltd. raised C$225 million in its December IPO.
Callidus targets Canadian and select U.S. borrowers whose perceived risk is too high to meet the criteria of traditional lenders, and whose capital requirements are too small to access high yield markets, the filing said. The lender’s chief executive officer is Newton Glassman, founder of Catalyst and a former managing director with Cerberus Capital Management LLC, according to the filing.
Catalyst was founded in 2002 and specializes in investing in distressed and under-valued opportunities in Canada, according to the filing.
Telephone messages left with Glassman and David Reese, Callidus chief operating officer, weren’t immediately returned.
Canaccord Genuity Group Inc. is leading a group of seven banks on the sale, which have the option to sell an additional 15 percent of the offering after the sale closes.
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