Abstract: A method of preparing a polycyclic compound containing a ketone functionality comprising: reacting a mixture comprising a catalyst, a reactant compound and an amount of water greater than or equal to 3 weight percent (wt %) based on the weight of the reactant compound; wherein said catalyst comprises nickel and base and said reactant compound comprises at least two fused rings, A and B wherein ring A is a saturated ring or ring system having 5 to 7 cyclic carbons and substituted with a hydroxyl functionality and ring B is a non-aromatic unsaturated ring having 5 to 6 cyclic carbons; and converting the hydroxyl functionality of ring A to a ketone functionality and non-aromatic unsaturated ring B to a saturated ring.