Investors Letter of Mingpo Cai, Founder, Chairman and CEO, Cathay Capital

December 31, 2024
Global

Dear Investors & Friends,

As 2024 draws to a close and a new year begins, I’d like to share a few thoughts with you, all shaped by a vision of growth, resilience and long-term impact.

BEYOND THE MACRO

Optimism & Vision in the Face of Challenges

In recent years, the global news cycle has often pulled us toward negativity, with headlines focused on wars, geopolitical tensions, deglobalization, stock market volatility and stagnant trade. Economic sovereignty, public investment in defense and industrial self-reliance are reshaping the global landscape. As countries prioritize value chains, we are witnessing a shift where manufacturing, energy and technology become focal points of national agendas.

Yet, in this context, our role as connectors is more crucial than ever and our usefulness can be even greater. Since Cathay Capital’s founding in 2007, we’ve thrived by building bridges between continent and between areas of expertise. This requires local immersion and the ability to transform every “foreign” market into a familiar one. To truly create value and contribute to communities, we must live and breathe the local culture, understanding markets from within to provide real solutions.

That’s why, in 2012, I moved to the U.S.—to build another bridge, foster transatlantic connections, and expand Cathay’s global ecosystem. Many of our partners have since done the same, strengthening our local teams across the world. At Cathay Capital, we never forget our roots and retain a sense of precarity with an underlying philosophy around survival. Success beyond borders is impossible if you don’t hit the road. And you shouldn’t stay too comfortable in your own pond because nothing is guaranteed.

Today, we’re one of the only European private equity and venture capital platforms with deep roots also in Asia and North America. Over the past 17 years, we’ve not only supported cross-border ambitions of high-potential SMEs or startups — we’ve built a unique ecosystem of large industrial groups, from CAC40 and beyond, as investors and strategic partners. This has allowed us to go even deeper into key sectors vital for the future such as healthcare, financial services, commerce and energy.

Whatever the cycles and geopolitical hazards, we’re committed to our role of being the bridge to industrial ecosystems across continents and ultimately bringing growth and innovation to life that will benefit all.

OUR COMMITMENT TO INVESTORS & PARTNERS

Not Your Typical Fund

Cathay Capital has never been a typical investment firm. From the beginning, our mission as a company has been to support a global ecosystem. This means we don’t follow traditional recipes; instead, we forge our own path day after day, always striving to create value for all stakeholders, not just one side.

Cross-Border Industry Connections & Solutions

Being useful to entrepreneurs and corporations is central to Cathay’s DNA — this is where we come from, it’s our history and horizon. This is exemplified by partnerships like French multinational SEB and Chinese brand Supor, Asian logistics platform ZongTeng and Aéroports de Paris, or more recently Hong Kong-listed down apparel leader Bosideng and Canadian brand Moose Knuckles. The power of our global platform lies in the ability to make meaningful industry connections across borders for the mutual benefit of our portfolio companies and our investors.

Our focus is to understand each company’s true challenges and goals. This enables us to deploy capital where it makes sense, making deals that align common interests and create shared value. Financial returns for our investors are a baseline; our aim is to deliver real solutions and unlock unique opportunities.

The Human Element at the Core

The relationships we cultivate are the driving force behind our success. In our work alongside entrepreneurs, we always keep in mind that progress isn’t just about capital or technology. It’s about collaboration, trust and shared values. Technology, no matter how powerful, is meaningless without real-world applications.

Fierce Sincerity

We pride ourselves on a principle of “fierce sincerity”—we say what we do, and we do what we say. This is not just a job for us; it’s a lifestyle. We hold ourselves accountable to our commitments, never losing sight of the trust you’ve placed in us.

Looking forward, we will continue to push ourselves to do better. As we continue to develop our global ecosystem, bringing with it a deeper level of vertical expertise, we aim to activate a virtuous cycle with better performance, better opportunities and better outcomes for all.

CONTINUING TO SHAPE CATHAY’S CULTURE

Purpose Beyond Profit

At Cathay Capital, we believe in doing well by doing good. Private equity and venture capital should serve a greater purpose beyond financial returns. Our approach leverages investments as a tool — the greater purpose is about solutions, helping businesses navigate complex challenges while creating value for society by tackling large scale issues such as the climate emergency or health crises.

It’s with this spirit that we’ve launched several vertical funds such as Cathay Cartech, Cathay Smart Energy, Cathay Consumer Co-Creation, Cathay Health (which saw its final close in May), our latest Infrastructure Fund in China in partnership with TotalEnergies and Dajia Insurance along with several other upcoming projects in the consumer, financial and healthcare sectors. And finally, it’s woven into our global flagship funds Innovation III and Midmarket III, which are now reaching maturity stage and attracting growing interest from all types of investors who see the value of our model and appreciate our track record.

In Closing

I would like to express my deepest gratitude to all our investors and partners for your continued confidence and trust in Cathay Capital. Together, we’ll continue to support the drive for re-industrialization in Europe and beyond while remaining fully committed to delivering long-term value, driven by our passion for growth, innovation and positive impact.

The entire Cathay Capital Group team joins me in wishing you a very happy festive season and an excellent 2025.

Sincerely,
Mingpo Cai, Founder, Chairman & CEO of Cathay Capital