Cathay closes Sino French Midcap fund on €500m

The fund is also known as Cathay Midcap Growth Fund III.

Launched in March, the vehicle hit its first close in June this year with capital commitments of €460m.

The vehicle follows on from the €150m Sino French Fund for SMEs, which was established by BPI and CDB in September 2012 and managed by Cathay.

Investors
The fund's cornerstone investors are BPI France and China Development Bank, which each committed €100m to the vehicle.

Overall, the vehicle has around 30 LPs from Europe, China and the Middle East, including the majority of Cathay's existing backers. New investors include several French and international institutional investors.

According to Cathay, 80% of Sino French Midcap's LPs are institutional investors, including pension funds, banks and asset managers, while the remaining 20% is made up of family offices and high-net-worth individuals.

Investments
Sino French Midcap will supply larger tickets than Cathay's previous funds, investing an average of €15-50m in the mid-market.

The fund will invest 40% of its capital in France, 40% in China and the balance in the rest of Europe, with a particular focus on Germany.

The vehicle will take both minority and majority stakes.

People
Mingpo Cai is the president of Cathay.

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