Cathay Capital launches Sino-French innovation fund

The fund, which has a target of EUR200-250 million ($222-277 million), has secured commitments from Bpifrance, a subsidiary of French state-owned bank Caisse des Dépôts, and China Development Bank (CDB) Capital. Two cornerstone investors will contribute EUR100-150 million, while the remainder will be raised from the third-party investors.

The fund will invest in a total of 12-18 digital start-ups across mobile internet, big data, the internet-of-things, advertising, digital marketing, software, cloud technologies and social networks. Each company will receive commitments EUR5-25 million.

The fund's geographic focus will be mainly in France and China and to a lesser extent in the US. Cathay plans to leverage its global network to help portfolio companies accelerate their international expansion.

This is the third time both state-backed investment arms have become LPs in a Cathay-managed vehicle focusing on the Chinese and French markets.

In September 2012, they created a EUR150 million vehicle to invest in cross-border small- and medium-sized enterprise (SMEs). Last year, they also jointly formed the EUR500 million Cathay Midcap Growth Fund III to promote the international expansion of companies in the mid-cap segment. 

Founded in 2006, Cathay Capital had invested in 36 companies and over EUR900 million assets under management.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Fundraising
• Venture
• Expansion
• China
• Europe
• Fundraising
• TMT
• Growth capital
• Venture