Cathay reaches $358m first close for second VC fund
Cathay Innovation, the venture affiliate of middle-market focused Cathay Capital Private Equity, has reached a first close of EUR320 million ($358 million) on its second fund targeting start-ups in China, Europe, and North America.
The fund has a target of EUR500 million. Its first close surpasses the entire corpus of Cathay Innovation's debut vehicle, which closed at $320 million in 2017. LPs in the second fund so far are mainly French investors such as returning investor Bpifrance, Groupe ADP, and Michelin. Newcomers include hotel operator Accor, JCDecaux Holding – the investment office of the Decaux family – and beverage maker Pernod Ricard.
Cathay Innovation was launched in 2015 with the backing of Bpifrance and China Development Bank Capital to support innovative technology start-ups and enable cross-border collaboration. The firm has offices in Paris, San Francisco, and Shanghai, and has backed a number of Chinese technology companies such as Hong Kong-based operating system developer KaiOS, self-driving technology maker Momenta, and social e-commerce player Pinduoduo.
“In today’s world, all players must accelerate the diffusion of their innovations to quickly scale up globally, and we have proven that connecting the key ecosystems of innovation in Europe, China and the US creates value,” said Mingpo Cai, president of Cathay Capital and co-founder of Cathay Innovation, in a statement. “We are very grateful to the partners that have adhered to this vision and pleased to welcome new investors and corporates in our ecosystem.”
Cathay Capital invests in middle-market companies in the consumer goods and services, healthcare, business services, and technology industries. The firm claims to have completed over 95 buyouts and growth capital investments across China, Europe, and North America since its inception in 2007. It has more than EUR2.5 billion in assets under management and is currently raising its second fund, which reached a first close of EUR600 million last year.
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