Cathay Capital closes $270M growth fund

June 29, 2023

Cathay Capital Private Equity raised $270 million for its small-cap fund IV, which will invest in health care, consumer and tech companies, head of North American private equity Mark Woods tells Axios exclusively.

Why it matters: As the high price of debt makes executing an LBO more difficult, small-cap and lower-middle market deals are easier to close.

Details: The fund will generally invest $15 million to $25 million in control and minority investments, Woods says.

  • The new fund is an expansion of Cathay Capital’s middle market strategy and brings assets under management to $5.5 billion.
  • As far as health care assets go, the fund will seek to invest in pharma services and physician practice management, the executive notes.
  • Cathay will invest in companies based in North America, as well as Europe and Asia.

What’s next: “We will look for roll-up opportunities, as M&A is a core skill set specific to our team,” Woods says. “You can change scale organically with good, growth-oriented companies but you can really scale with M&A.”

Read the full article by Aaron Weitzman in Axios here: Cathay Capital closes $270M growth fund