Cathay Capital Private Equity Announces Final Close of €240M Small Cap IV Fund
June 29, 2023
Europe
Small Cap IV reflects Cathay Capital’s ESG ambitions while further connecting regions from Europe to Asia and North America
June 29th, 2023 – Today, Cathay Capital Private Equity announced the final close of its fourth Small Cap fund at €240M, investing in growth companies across Europe, North America and Asia. The new fund brings Cathay Capital’s assets under management to over €5B as the team continues to support companies of all stages navigating the sustainable transformation society.
Small Cap IV is the first of Cathay Capital’s private equity funds to be designated as Article 8[1], thus joining the latest venture capital fund (Cathay Innovation) and healthcare fund (Cathay Health) in pushing forward the firm’s overarching ESG ambitions. In this regard, not only will the investment team apply exclusion filters during the selection process, but will also set and track tailored objectives for portfolio companies to embed responsible, sustainable business practices into operations (e.g., diversity, decarbonization, goverance).
“Private equity has a much greater purpose beyond profit. Over the years, it’s become clear that ESG matters and economic value go hand in hand as the financial success of a company is closely correlated to the impact it has on its immediate environment, populations and the planet,” said Mingpo Cai, Founder and Chairman of Cathay Capital Group. “As investors, our goal is to give founders, executives and management teams the capacity to drive real change within their industries and create the world of tomorrow. With Small Cap IV, we hope to turn SMEs into game changers while ensuring the companies we support have a positive impact on the economy and society.”
A Global Ecosystem Supporting SME Growth
Cathay Capital Group has completed over 260 buyouts, growth, and venture capital investments since its establishment in 2007. Over the last 15 years, the firm has built a global ecosystem that brings together investors, small and midsize companies, startups and some of the largest corporations to share in-depth sector and local market knowledge while providing tools, networks, and industry access to support growth.
The Small Cap fund strategy focuses on supporting high-growth companies through tailored scale-up strategies, internationalization, and the integration of cutting-edge technology. Small Cap IV will invest in 12 to 15 companies in the healthcare, software, consumer and education sectors across key regions including Europe, Asia and North America, which has a dedicated allocation for the first time. The new fund is designed to invest equity tickets of €15 to €30M mainly through minority investments alongside founders. The Cathay Capital Private Equity team has already completed 7 investments in the new fund, including AD Education, a leading provider of education in arts, design and digital in France; Chowsing, a manufacturer of pet nutrition and food in China; and Snocks, a 100% digital basic apparel brand in Germany; or Transcure, a preclinical Contract Research Organization specializing in oncology.
“Our investment philosophy for SMEs leverages Cathay’s global ecosystem and deep-rooted understanding of local markets to transform small organizations to larger, global champions,” said Fabien Wesse, Managing Partner and Head of Small Cap at Cathay Capital. “Small Cap is one of Cathay’s most mature investment strategies but as global economies and societies face rapid change, we have refined our approach in supporting founders in four transformation pillars: top-line growth, international expansion, digitalization and impact. We look forward to continue supporting founders in developing these key value-creation drivers that will ensure companies are on track for a fast and sustained growth trajectory.”
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About Cathay Capital
Cathay Capital Group is a global investment firm supporting companies at all stages throughout North America, Asia, Europe and Africa. By helping navigate the opportunities of globalization and sustainable transformation, Cathay is the partner of choice for companies aspiring to lead markets and make a positive impact. Its global platform connects people – from investors and entrepreneurs to management teams and leading corporations – across continents to share knowledge, the tools to scale, and achieve the extraordinary. Founded in 2007 with a strong entrepreneurial heritage, Cathay Capital now manages over $5B in assets, has completed over 260 buyouts, growth and venture capital investments with the global reach and local expertise from offices in Paris, Munich, Berlin, New York, San Francico, Shanghai, Beijing, Shenzhen and Singapore.
For more information, please visit www.cathaycapital.com
Follow us on LinkedIn, Twitter @CathayCapital
Media Contacts – Citigate Dewe Rogerson for Cathay Capital
Léa Schultz
Tel: +33 7 57 52 06 05
Yoann Besse
Tel: +33 6 63 03 84 91
[1] within the SFDR regulation framework