Cathay Capital Private Equity (Cathay Capital) has raised USD850 million for its private equity fund, Midcap II. Founded in 2007, with offices in the US, Europe and China, Cathay Capital has completed over 140 buyouts, growth and venture capital investments. Midcap II represents Cathay Capital’s largest fund, an increase of USD325 million over its Midcap I fund which closed in 2014. With the new fund, Cathay Capital will have [USD3.8-plus billion] in assets under management.
“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,” says 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.”
Midcap II will invest in 16-20 companies in the consumer products and services, business and digital services, healthcare and advanced manufacturing sectors. 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 USD25-75 million in control and minority investments. To date, Midcap II has completed four direct investments, including its first investment by its North American team – a disruptive luxury outerwear company geared toward Millennials and Gen Z consumers.
“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,” says Mark Woods, Partner and Head of North American Private Equity.
Cathay Capital Midcap II was backed by a diverse group of existing and new global investors comprising sovereign wealth funds, institutional investors, corporates, and family offices.
