Four years after the launch of the first Sino-French SME fund (or “SFF SME”) and ten years after the company’s creation, Cathay Capital continues to support the development of French and Chinese small and medium-sized companies, especially in their international expansion.
The new investment vehicle Cathay Small-Cap III – also named SFF SME II (for “Sino-French SME Fund II”) – has just received the support of two of Cathay Capital’s historical institutional investors, Bpifrance and China Development Bank. They have executed a memorandum of understanding for a subscription of €25m each. SFF SME II, with a target size of €200m by May 2017, has already secured firm and soft commitments totaling €150m to date. SFF SME II’s investment team has been working on several operations since early 2016 and is expected to close the fund’s first few investments over the next couple of weeks, including the acquisitions of AD Education (higher education) in France and Aihuishou (cellphones recycling) in China.
SFF SME II builds on Cathay Capital’s original strategy initiated with its CCI and CCII funds, and represents a continuation of the “SFF” line of investment vehicle launched in 2012. SFF SME has so far successfully invested €150m in some 15 companies, split equally between France and China.
In France, Cathay Capital has been supporting companies such as Smart AdServer, Surys (previously known as Holodram Industries) and SeaOwl, which have significantly increased their international footprint thanks to the active support of SFF SME.
In China, SFF SME contributed, for example, to the success of ZM Logistics Group, which is emerging as the leader of cold chain logistics in China and is developing partnerships with French companies thanks to the assistance of Cathay Capital.
“Thanks to the continuous support of our investors, we are in turn able to support French and Chinese SMEs and help them succeed on a global scale. The Cathay team, its investors and entrepreneurs form together a comprehensive ecosystem that empowers SMEs to grow, innovate, create jobs and value, and to excel. Thank you all for making the first Sino-French fund a success, as well as for strengthening the links between Europe and Asia and bolstering the impact of our ecosystem through contributing to this new investment vehicle.”
— Ming Po CAI, President of Cathay Capital Private Equity