General Catalyst, Blue Torch Raise $300M from WSIB

The $197.3 billion Washington State Investment Board has committed up to $300 million to two alternative funds.

The pension fund has set aside up to $200 million for venture capital giant General Catalyst’s Group XII fund, which is reportedly seeking $5 billion. The target amount is slightly more than the $4.6 billion raised in 2022 for the second fund in the series.

General Catalyst focuses on investments in fintech and education and has previously funded firms such as Airbnb, Instacart, and Stripe.

Blue Torch Capital, a U.S. credit investor, obtained up to $100 million for its special situations fund Opportunities Unlevered Fund III. In 2023, Blue Torch said it would aim to raise up to $2 billion for its third fund in the strategy, and by July it had raised about $600 million.

Its predecessor fund closed on $1.7 billion in 2021 to provide first lien, senior secured loans across industries to North American “companies in transition,” which consists largely of companies having at least $50 million in annual revenue and no minimum EBITDA from acquisitions, growth, venture debt, LBOs, and other means.