Cathay Capital closes the Sino French (Midcap) Fund for €500 million

May 4, 2020
Global

Cathay Capital today announces that it has successfully carried out the final closing of the Sino French (Midcap) Fund for a total amount of 500 million Euros. This new investment vehicle will focus on partnering with French, Chinese and European companies of the midcap segment to help them implement their cross-border growth strategies.

The fund’s hard-cap of 500 million Euros was reached less than six months after the official launch of the fund and a first closing carried out in June 2014. In addition to Bpifrance and China Development Bank, long-term partners of Cathay Capital who both contributed 100 million Euros, this investment fund was also subscribed by around thirty other investors drawn from Europe, China and the Middle East. Cathay Capital was assisted by Global Private Equity for this fundraising, particularly for Middle Eastern investors.

A majority of Cathay’s historic investors chose to reinvest in this new vehicle, while several new partners, including French and international institutional investors, also contributed to the fund. In total, institutional investors (pension funds, banks, asset managers etc.) account for 80% of the amount raised, while high-net-worth-individuals and family offices make up 20% of the subscriber base.

Compared to Cathay Capital’s previous investment funds, the Sino French (Midcap) Fund will invest larger amounts, with average investment tickets of between 15 and 50 millions Euros, in bigger companies. The fund’s investments, which will be made in both majority and significant minority shareholder positions, will be spread across midcap companies in France (40%), China (40%) and Europe (20%), with a core focus on Germany.

The closing of the Sino-French (Midcap) Fund is the culmination of an eventful year for Cathay Capital that has seen several investments in both China and France, as well as many exits within the first Cathay Capital fund, which have allowed the firm to generate significant returns for its investors, in less than 7 years since the fund’s creation.

Mingpo Cai, President of Cathay Capital Private Equity, stated: “The swift fundraising of our new midcap fund demonstrates the attractiveness of our investment strategy, the vast experience of our multicultural investment team and the dynamism of our whole ecosystem. We would like to thank our investors, both historic and new, who have placed their trust in us during this new stage in our development. With this new fundraising, we will remain committed to our strategy and continue to partner with companies to help them grow beyond borders, thanks to our unique value creation strategy.”