French-Chinese private equity firm, Cathay Capital PE has raised $US850 million to fuel international expansion of middle-market companies in China, North America and Europe.
The French-Chinese private equity firm is focused on growth capital, supporting mid-size French companies looking to expand into the Asian market; as well as partnering with Chinese companies seeking a European foothold.
Cathay Capital says the Midcap II fund will invest in 16 to 20 companies in business and digital services, advanced manufacturing sectors, as well as consumer products and services.
Midcap II represents Cathay Capital’s largest fund to date and an increase of $US325 million over its Midcap I fund, which closed in 2014.
Managing Partner of Cathay Capital, Hervé Descazeaux says the significant increase in assets under management in the current environment reflects the renewed confidence of Cathay’s existing investors, as well as new partners, including international financial institutions.
“Midcap II is particularly timely given the current environment, as Cathay’s considerable global resources and Midcap II’s strong capital base can help our portfolio companies to identify and seize upcoming opportunities,” Descazeaux says.
The new fund will also include an allocation to North America, which is in addition to the previous fund’s allocation to Europe and China.
The fund will invest equity tickets of $US25 to $US75 million in control and minority investments.
Cathay Capital says the latest fund was backed by a diverse group of existing and new global investors comprising sovereign wealth funds, institutional investors, corporates, and family offices.
Founded in 2007, Cathay Capital has completed over 140 buyouts, growth and venture capital investments and manages $US3.8 billion in assets across a range of investment strategies and vehicles.