A Sino-French fund managed by Cathay Capital Private Equity has held a first close of €460m, putting it just €40m away from its target.
Cornerstone investors Bpifrance and China Development Bank Capital Corp have each committed €100m to Cathay Midcap Growth Fund (CMGF) III, which has also attracted Cathay’s existing LPs.
The fund follows a €150m SME fund, which was also managed by Cathay and supported by Bpifrance and CDB Capital.
That vehicle has invested in companies including French businesses Flexitallic Group and Hologram Industries and China’s Meinian Onehealth and ZM Logistics.
CMGF III will make larger investment in bigger companies for significant minority and sometimes majority stakes.
Cathay Capital president Mingpo Cai said, “We are pleased to celebrate the official launch of this new midcap fund with our partners Bpifrance and CDB Capital, whom we wish to thank for their continued support.
“This new initiative, which will help to deepen and develop our collaboration after the success of our joint SME fund, attests to Cathay’s recognised investment expertise, which is founded on our 8 years of experience in cross-border investment between China and Europe.”
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