China Everbright and Catalyst Equity Management launch $200m Israel-focused fund


israel_flag2_170sqHong Kong-based firm China Everbright has teamed up with Israel’s Catalyst Equity Management to launch a private equity fund to focus on investment opportunities in Israel.

The fund, which has a $200m target with a $300m hard cap, will back companies looking to expand in China. China Everbright has agreed to commit up to $75m to the vehicle, which aims to back around 10 businesses.

“We see great potential in Israel as a country. We see a lot of opportunities in water, telecommunications, technology, manufacturing, healthcare and medical equipment. Those can be linked to demand in greater China,” China Everbright CFO Richard Tang told Reuters.

The report also quotes the firm’s CEO Chen Shuang, who said that while China’s outbound investment has been increasing at a fast pace, it is still at a low level for an economy of its size.

In August this year venture capital firm Sequoia Capital raised more than $1bn across three vehicles to invest in the US,China and Israel.

The firm’s Israel Venture Fund V raised $215.5m and $11.9m via a parallel vehicle.

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