Chinese appliance maker to invest in Cathay's Sino-French fund

Joyoung said in a filing that it would invest through a Hong Kong subsidiary. The company added that it wants to grasp the investment opportunity in high growth internet companies. By participating in the fund, it can eliminate investment risks as well as to look for acquisition targets.

Joyoung specializes in producing and distributing soymilk makers and other kitchen appliances, such as cookers, blender and electrical kettles. The company reported revenue RMB5.9 billion ($929 million) last year, up from RMB5.3 in 2013. Net profit rose 7.8% year-on-year to RMB470 million in 2014.

The Sino French Innovation Fund, which has a target of EUR200-500 million, was launched in July. It has already secured commitments from Bpifrance, a subsidiary of French state-owned bank Caisse des Dépôts, and China Development Bank (CDB) Capital. The 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. Its 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.

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

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• Topics
• Greater China
• LPs
• Fundraising
• Venture
• Cathay Capital Private Equity
• LPs
• Fundraising
• Venture
• Growth capital