- NYCEDC has launched NYC Catalyst Fund II with $25 million to invest up to $5 million each in impact-aligned private equity and private credit fund managers.
- The fund targets managers backing diverse entrepreneurs, economic mobility initiatives, and high-growth innovation sectors such as technology, life sciences, and the green economy in NYC.
- NYCEDC aims to leverage its $25 million commitment to catalyze more than $125 million of total investment into New York City-based businesses and projects.
- NYC Catalyst Fund II builds on the first $40 million Catalyst Fund, which backed eleven managers and is projected to mobilize over $280 million into about 140 local companies.
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On December 8, 2025, the New York City Economic Development Corporation (NYCEDC) formally kicked off the NYC Catalyst Fund II by issuing a Request for Applications (RFA) for impact-aligned private equity and private credit fund managers. The initiative comes with $25 million in committed capital, with individual commitments expected to be up to $5 million per fund. This new round is intended to build on the success of the first NYC Catalyst Fund, launched in 2023, which allocated $40 million among eleven fund managers across diverse impact areas. [1][2]
Compared to the inaugural fund, the second iteration maintains many thematic consistencies: it prioritizes support for founders and businesses led by underrepresented individuals (diverse entrepreneurship), for funds that improve economic mobility (through workforce development, small business finance, education, etc.), and for high-growth sectors including technology, life sciences, and the green economy. It also requires fund managers to have a demonstrated commitment to the New York City ecosystem, both via presence and investments. [1]
Strategically, the aim appears twofold: first, to deepen the inclusive economic development within NYC by directing capital toward underserved founders and neighborhoods; second, to leverage the initial public investment to catalyze significantly more private capital—$25 million from NYCEDC is intended to drive over $125 million in total investment through the selected funds. This approach mirrors the earlier Catalyst Fund’s leverage of $40 million to prompt $280 million in downstream investment. [1][2]
Financially, NYCEDC expects market- or near-market-rate returns (
Supporting Notes
- NYCEDC allocated $25 million for the NYC Catalyst Fund II and will make commitments up to $5 million per fund manager. [1]
- Impact verticals required include diverse entrepreneurship; economic mobility; and innovation sectors core to NYC’s economy: life sciences, creative, technology, green economy. [1]
- Fund managers must demonstrate physical presence or increased investment activity in NYC and engagement with its investment ecosystem. [1]
- The first NYC Catalyst Fund (2023) invested $40 million into eleven impact-aligned fund managers and is expected to catalyze over $280 million into 140 NYC-based companies. [2]
- Some fund managers in fund I: Harlem Capital, Maycomb Capital, Antler, Avante Capital Partners, Candide Group (Afterglow Climate Justice Fund), HCAP Partners, MetaProp, nvp capital, Open Opportunity Fund, Rethink Education, Turning Rock Partners. [2]
- Commitments in Fund I ranged from approximately $1 million to $7 million to each fund manager. [2][3]