Cathay Closes New Fund with North American Allocation

 Cathay Capital Private Equity has closed its latest fund, Cathay Capital Midcap II, with $850 million of capital.

The new fund was backed by both existing and new investors including sovereign wealth funds, institutional investors, corporates, and family offices.

Midcap II will invest from $25 million to $75 million in control and minority positions in 16 to 20 companies in the consumer products and services, business and digital services, healthcare, and advanced manufacturing sectors.

Cathay Capital was founded in 2007 and has completed over 140 buyouts, growth and venture capital investments and now manages more than $3.8 billion of assets. Midcap II is Cathay Capital’s largest fund to date and an increase of $325 million over its Midcap I fund, which closed in 2014.

The new fund includes an allocation to North America, which is in addition to the previous fund’s allocation to Europe and China. “The inclusion of North America in the allocation of Midcap II is a natural evolution that leverages Cathay’s deepening presence in North America, a key element of the firm’s globally integrated investment strategy,” said Mark Woods, a partner and head of North American private equity for Cathay.

“This significant increase in assets under management in the current environment reflects the renewed confidence of Cathay’s existing investors, as well as the many new partners attracted by Cathay’s reputation and track record, with a notable addition of international financial institutions,” said Hervé Descazeaux, managing partner of Cathay Capital. “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.”

Cathay Capital has more than 100 employees with offices in Paris, Shanghai, Beijing, New York, San Francisco, Munich, Tel Aviv, and Singapore.

Private Equity Professional | May 19, 2020

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