China-based private equity firm Cathay Capital closed the first fund for its venture capital arm Cathay Innovation at $320m today with support from a range of corporate investors.
The fund’s limited partners include BNP Paribas Cardif, financial services firm BNP Paribas’ insurance arm, as well as airport operator ADP, diversified holding group Artemis, appliance makers Joyoung and SEB, tire producer Michelin, oil and gas company Total and auto parts supplier Valeo.
The corporates joined state-owned investment bank French Bpifrance and CDB Capital, a subsidiary of the Chinese government-owned China Development Bank.
Cathay Innovation was formed as a VC vehicle that can support startups across North America, Europe and China. It makes initial investments sized between $3m and $15m, in between 20 and 25 portfolio companies.
The fund also aims to work with its corporate partners, which also include telecommunications firm Telefónica, by exchanging deal flow and industry insights.
Denis Barrier, managing partner of Cathay Innovation, said: “Working with these partners is an integral part of Cathay Innovation’s approach as our strategic investors form a leading strategic committee that gathers on a regular basis to anticipate the impact of the digital revolution with a consistent global vision covering a multitude of industries.
“Combined with Cathay’s international platform, this network of partners brings enormous added value to the companies we support such as facilitator of links, catalyst of opportunities and provider of sector expertise.”
Cathay Innovation so far has 10 portfolio companies, including customer insights platform Quantifind, vehicle rental marketplace Drivy and smart data software provider Alkemics.