Cathay Capital launches its Smart Energy Fund with founding partners Total and Hubei High Tech
May 4, 2020
Cathay Capital Private Equity (‘Cathay’), Total Energy Ventures (‘Total’), Hubei High Technology Investment Guiding Fund Management Co., Ltd. (‘Hubei’), have signed today a Framework Cooperation Agreement to launch the Cathay Smart Energy Fund, an investment fund dedicated to the new energy sector in China. The fund will focus its investments on emerging technologies and new business models of the Chinese energy sector, notably renewable energy, energy internet, energy storage, distributed energy, smart energy and low carbon activities. To launch this new vehicle – and Cathay Capital’s second RMB industry fund – Total and Hubei will respectively invest around 300 million yuan (50 million USD). Ultimately, the fund targets a size of 1.5 billion yuan (~250 million USD).
Climate change and sustainable development have become a major concern all over the world as citizens and consumers are demanding cleaner energy. The global energy market structure is changing through increasing economic efficiency, positive consumer behavior, ever-advancing technology, and reforms of supervision system. A new energy market is forming gradually towards cleaner and smarter energy.
As a giant with huge energy demand, China faces increasing environmental challenges, and tackles them with unprecedented resolution and efforts. The Chinese authorities have strengthened environmental protection and are committed to reducing dependency on traditional energy. China has been investing significantly in recent years to develop renewable energy and create a smart energy industry. The government has also taken a series of policy measures to encourage new companies to emerge through creativity and technological innovation. For instance, China is now the number 1 producer or electric vehicles in the world, with a very innovative local ecosystem.
The Cathay Smart Energy Fund intends to accelerate this trend, thanks to the support and cooperation of its investors Total and Hubei. Total is a global integrated energy producer and provider, a leading international oil and gas company, a major player in low-carbon energies. Its 98,000 employees are committed to better energy that is safer, cleaner, more efficient, more innovative and accessible to as many people as possible. As a responsible corporate citizen, Total focuses on ensuring that its operations in more than 130 countries worldwide consistently deliver economic, social and environmental benefits. Hubei High Tech is the investment and financing platform established under the leadership of Hubei Provincial Government. It focuses on supporting and developing emerging and strategic industries and has a deep industry knowledge of the wind and solar energy, as well as other new energies.
The Cathay Smart Energy Fund brings together Cathay’s unique platform and resources across three continents, Total’s global industry leadership as well as the advantages and features of Hubei province in technological innovation in the field of new energy and friendly innovation policy environment. The Cathay Smart Energy Fund will deepen exchanges and cooperation of relevant enterprises, develop innovation opportunity of new energy technology, and promote development of strategic emerging industries.
Patrick POUYANNÉ, Chairman and CEO of Total, said: “China is at the forefront of 21st century energy technologies. Through this investment, we are delighted to become a part of the innovation ecosystem of the Chinese energy sector, benefiting from the knowledge of the Chinese market that Cathay Capital brings to us. We believe that it represents a significant growth and innovation potential in areas of new energies and sustainable development and resonates with Total’s ambition to become the responsible energy major.”
Yuanchu LI, General Manager of Hubei High Tech, added: “As the world’s largest producer and consumer of electric energy, China is developing this energy on a large scale and gradually replacing its regional stocks. To foster this transition, Hubei Province intends to bring leading companies into the global energy industry, actively encourage the development of the smart energy industry in Hubei and stimulate key Hubei industries such as automotive. Through strategic cooperation with Total and Cathay, Hubei High Tech will work with all stakeholders to accelerate the development of a new energy industry.”
Mingpo CAI, President of Cathay Capital, concluded: “Chinese energy market is greeting a new development period, and Cathay hopes to support it through our cross-border experience and platform stretching across China, Europe and America. As part of the Smart Energy Fund, we will bring our unique combination of capital, industry resources and international footprint to invest in clean energy in China with a global vision.”
About Total Energy Ventures
TEV is Total’s venture capital arm for investing in energy start-ups. Its investments support innovative technologies and businesses in areas such as renewable energies, energy efficiency, energy storage, digital energy, internet of things, and sustainable transportation. Its portfolio companies include Autogrid, Stem, Sigfox and Ontruck. TEV is present globally and has already invested 10 million EUR in the Sino French Innovation Fund, with one third of investments dedicated to China.
Media Relations: +33 1 47 44 46 99 l [email protected] l @TotalPress
About Hubei High Tech
Hubei High Technology Investment Guiding Fund Management Co., Ltd., which was established in July 2016, is a fully-owned subsidiary of Hubei Provincial High Technology Industry Investment Co., Ltd. It is mainly responsible for guiding the operations and management of funds entrusted by the local government. The Company today manages 3 guiding funds, representing RMB 5.8 Billion in AUM and had created nearly 30 sub-funds as of December 2017, representing a scale of over RMB 12 Billion. Over 150 investments have been made with these sub-funds, mainly to upgrade traditional, strategic and emerging industries but also modern and pension services, in order to amplify the key role of financial funds and to drive the development of key industries in the Hubei Province.
About Cathay Capital
Cathay Capital Private Equity, founded in 2006 by Mingpo Cai and Edouard Moinet, is a leading international private equity firm in the field of cross-border investment, committed to supporting the international expansion of companies from China, Europe and the United States. As a fund made by entrepreneurs for entrepreneurs, Cathay Capital’s team leverages on Cathay’s unique business model and platform to help create value for companies by removing borders. Cathay’s Group presence across three continents materialises through offices in Shanghai, Beijing, Paris, Munich, New York and San Francisco. Cathay’s team of 80 currently manages 8 funds and over USD 2 billion in assets.
For more information, please visit www.cathay.fr
Media Relations for Cathay Capital
Yoann Besse, Citigate Dewe Rogerson
+33 (0)1 53 32 78 89 / +33 (0)6 63 03 84 91 or [email protected]