Catalyst Investors LLC rolled out its first real estate opportunity zone fund with a goal of raising $150 million.

The double bottom-line private equity firm said Fund I will target investments in small and middle-market communities in the U.S., with a focus on mixed-use developments. The firm noted that it has already identified and is conducting due diligence on more than 50 investment opportunities across 18 states with total project value of about $2.15 billion.

Catalyst said it expects to raise a second opportunity zone fund that will invest in job-creating operating businesses in the same communities.

The federal opportunity zone initiative aims to spur investment and business growth in undercapitalized areas by offering tax incentives.