'Cat Daddy' Rapper -- Arrested for Grand Theft Outside Hollywood Hotspot

Jovan Clayton -- whose group The Rej3ctz made Kate Upton famous with the song "Cat Daddy" -- was busted early Friday morning for allegedly stealing more than $2,000 worth of stuff inside a nightclub.

Law enforcement sources tell TMZ ... Clayton allegedly stole "personal items" inside 1Oak nightclub in West Hollywood. A source at the scene tells TMZ the items included alcohol and the contents of another person's purse.

Someone called 911, L.A. County Sheriff's deputies raced to the scene and Clayton was cuffed and taken away.

Clayton -- who is better known as Pee Wee -- is being held on $20K bail.