Cathay Capital reaches $629m first close on Sino-French fund
Cathay Capital has reached a EUR460 million ($629 million) first close on its latest Sino-French fund which has a final target of EUR500 million.
China Development Bank (CDB) and Bpifrance, a subsidiary of French state-owned bank Caisse des Dépôts, each contributed EUR100 million when the fund was launched in March. The remainder was raised from third-party investors, including Cathay's exisiting LPs from its previous two funds, international institutional investors, entrepreneurs and family offices.
The vehicle, Cathay Midcap Growth Fund III, aims to promote the international expansion of French and Chinese companies in the mid-cap space. It will also invest elswhere in Europe - in particular, German small- to medium-sized enterprises - with a view to supporting economic growth and creating new jobs.
Mingpo Cai, Cathay's president, previously told AVCJ that the firm will invest with a bigger ticket size, around EUR30-50 million per company, with an enterprise valuation above EUR120 million.
"Chinese companies will be able to benefit from advanced technological expertise which are well-developed in France, while, in turn, French companies will gain from increased exposure to the booming Chinese consumption market, especially within certain sectors such as lifestyle, industry and technology," said Haibin Fan, CDB's president, in a statement.
Set up in 2006, Cathay - which has more than EUR420 million in assets under management - has invested a total of EUR70 million in 18 companies over the last three years via its debut fund.
It is now investing through its second fund - Cathay Capital II - and a EUR150 million Sino-French parallel fund it has managed on behalf of CDB and Caisse des Dépôts since late 2012. The fund targets cross-border opportunties with SMEs in both countries.
The SMEs fund has made two investments in France, the Flexitallic group, a sealing solutions provider for high-tech industries, and Hologram Industries, a digital high-security technology developer. It also invested in China's healthcare check-up center operator Meinian Onehealth as well as the logistic and supply chain service provider ZM Logistics.
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