Cathay Innovation, the venture capital arm of France-based private equity firm Cathay Capital, reached the €320m ($358m) first close of a €500m fund today, securing capital from several corporate limited partners.
The LPs include hospitality chain Accor, airport operator ADP, biotech firm BioMérieux, diversified conglomerate Dassault, outdoor advertising company JCDecaux, luxury goods producer Kering, appliance maker SEB, tire manufacturer Michelin, alcoholic beverage producer Pernod Richard and automotive components supplier Valeo.
French government-owned investment bank BPIfrance has also thrown its weight behind the fund.
Cathay Innovation was established in 2015 to invest in startups based in Europe, North America and China, supporting portfolio companies through multiple rounds. The venture capital operation has grown to 30 staff across offices the cities of Paris, San Francisco, Beijing and Shanghai.
Cathay Innovation’s first fund achieved its final close of $320m in 2017, raising cash from LPs including ADP, SEB and its peer Joyoung, Michelin, Valeo, and financial services firm BNP Paribas’ insurance division, BNP Paribas Cardif.
The first fund also featured oil and gas company Total, BPIfrance and CDB Capital, a unit of Chinese state-owned financial institution China Development Bank. It has invested in more than 30 companies to date.
The second fund is expected to maintain the firm’s focus on the digital transformation of industries ranging from commerce and consumer technology to business-to-business services, healthcare, financial services and energy.
Cathay is particularly keen on aligning its investments with the United Nations’ Sustainable Development Goals, a set of 17 targets for environmental and social benefits such as the elimination of poverty and hunger, and access to clean water and sanitation.
