Bpifrance, China Development Bank and Cathay Capital launch EUR 1.2bn Sino French Midcap II

A new Memorandum of Understanding (MOU) has been signed in Beijing by Bpifrance, China Development Bank (CDB) and Cathay Capital on the occasion of the French presidential visit to China. As part of this agreement, CDB and Bpifrance are willing to continue their cooperation by creating the successor to the first Sino French Midcap Fund Iaunched in 2014. This investment vehicle named Sino French Midcap Fund II, has a fundraising target of EUR 1.2 billion. The fund should complete its first closing and first investments before June 2018.

This fund confirms the fruitful cooperation between France and China for private equity investment. It builds on the success of the investment philosophy developed and managed by Cathay Capital through clear-cut product lines (small cap, mid cap and innovation), a strategy that CDB and Bpifrance have been supporting since 20121 .

Following the previous EUR 500m investment vehicle, the Sino French Midcap Fund II will focus mainly on lower to upper mid-cap companies having their principal place of business or activities in France and/or China, with a high potential for growth and value creation as well as a capacity to quickly expand internationally. The Sino French Midcap Fund II will mainly invest in China and France, with the possibility to invest a small portion in Europe and North America. The objective of this fund is to expand the activity of such companies beyond their respective territory.

The Sino French Midcap Fund II plans to attract other French, Chinese and international institutional investors in the fund, thus making a joint contribution to international cooperation. To contribute to the internationalization of the RMB and to promote France’s position as the world’s leading off-shore RMB exchange hub, the fund will also admit RMB investors.

Source: Bpifrance press release

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