Cathay achieves $241m first close on renminbi fund
Cathay Capital Private Equity has reached a first close of CNY 1.6bn (USD 241m) on its second renminbi-denominated growth fund.
The vehicle, which is registered in Suzhou, Anhui province, has a target of CNY 3bn, twice the size of its 2019-vintage predecessor. Existing LPs such as Suzhou Innovatitive Industry Development Guidance Fund, Taikang Insurance, Xiamen C&D, Ancheng Capital, and Quanzhou Financial Holding Group all re-upped.
The anchor investors are two of Cathay’s longstanding European LPs: automobile parts supplier Valeo and container shipping company CMA CGM Group.
The firm entered the renminbi fund space in 2017 with a view to helping European strategic partners - including TotalEnergies and Air Liquide, as well as Valeo and CMA CGM - identify and invest in the latest technology and applications in China.
A car technology fund launched in 2017 with a target of CNY 1.5bn. This was followed by a smart energy fund seeking the same amount. It eventually closed on CNY 820m in 2020. CMA CGM made an LP commitment to the energy fund, while Valeo anchored the first local currency growth vehicle.
Fund I portfolio companies include beverage brand Genki Forest, nutritional food provider Wonderlab, beauty brand Guyu, Shanghai GTA Semiconductor, battery manufacturer Svolt, and energy-oriented internet-of-things (IoT) player Allsense Technology.
Fund II will retain the same broad sector focus: consumption, healthcare, and industrial technology with an emphasis on carbon neutrality. It will primarily invest in growth-stage and mature businesses, as well as some early-stage and M&A projects.
Founded in 2006, Cathay Capital has EUR 5bn (USD 5.4bn) in assets under management. It claims support from more than 20 long-term LPs that are also Fortune 500 companies.
"Under the influence of multiple uncertain factors in the global economic development, the continuous trust and support of investors has undoubtedly given us great confidence and strengthened the Cathay team's long view, and the determination to invest in China and globalisation,” said Mingpo Cai, founder and chairman of Cathay Capital, in a statement.
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