Franco-Chinese private equity firm Cathay Capital is looking to raise €500m for its Cathay Midcap Growth Fund III.
The firm has secured the backing of BPI France and China Development Bank, with each potentially providing a cornerstone of up to €100m.
The fund will invest in both China and France, as well as looking further afield in Europe, including Germany’s Mittelstand.
The firm’s inaugural fund, Cathay Capital I was launched in 2007, investing close to €60m in 18 French and Chinese companies between 2008 and 2011. Cathay Capital II was launched in July 2011 with €190m.
In September 2012, the Caisse des Dépôts Group and the China Development Bank backed Cathay Capital to launch the €150m Sino French Fund, “to develop cross-cultural investments between France and China”.
Cathay Capital is aiming for a first closing in June, it said.
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