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A unique global investment platform with worldwide cross-border resources

cathay capital

An investement platform operating on
3 continents and 6 offices

Testimonials

  • cathay capital innovation« The close involvement of the Cathay Capital team with our activities allowed us to pursue our growth at a sustained level and to reach a higher level in terms of our international development, particularly in Asia. »

    Alexandre Crazover,
    Datawords

  • cathay capital innovation« By acting as a trusted shareholder, Cathay Capital has helped to strengthen mutual understanding and to secure our relationships with French partners. Thanks to Cathay Capital’s valuable role, Suofeiya today represents a real success story, which has successfully completed its IPO and continues to push forward its development with dynamism. »

    Ke Jiansheng,
    Suofeiya

  • cathay capital innovation« The strategic positioning of Cabio is to become an invisible champion of the niche market for high-end food ingredients based on highly effective biological technology. Cathay Capital has extensive resources and practical experience in the cross-border investment field and food industry, which will provide a strong support for Cabio`s development, »

    Dewei Yi,
    Founder and President of Cabio

News

  • Cathay Capital Announces Its Investment in Guanghua Education Cathay Capital has recently invested in Guanghua Education, a leading private education network providing high quality international high school curricula (A-level and AP) and bilingual K12 curricula to Chinese students. Read more

    Cathay Capital Announces Its Investment in Guanghua Education

    Cathay Capital has recently invested in Guanghua Education, a leading private education network providing high quality international high school curricula (A-level and AP) and bilingual K12 curricula to Chinese students.

    International education is the fastest growing sub-sector within the Chinese private education sector. As disposable incomes are growing in China and overseas universities are expanding sources of funding, more Chinese students are willing to go abroad to study. Chinese parents prefer to let their children go to private K12 international schools in China when they are young, and then go abroad when they are more mature.

    Guanghua Education is a premium private school operator in China with extensive A-level teaching experience. It has a successful college placement track record and owns strong brands in A-level education. Currently, Guanghua's portfolio consists of (i) four majority-owned schools, (ii) four minority-owned schools and (iii) two cooperative programs. Over the past eight years, 100% of Guanghua graduates have attended colleges or universities upon graduation and approximately 80% have been accepted into the world’s top colleges or universities such as Cambridge, Oxford, LSE, Imperial College, UCL, MIT, Stanford, Chicago and NYU (among others).

    Guanghua Education Group aims to provide high-quality international education to meet students’ growing demand for high school international curricula. With Cathay Capital’s support, the company plans to acquire high quality private schools in China, Europe or the United States to diversify its offerings. These potential acquisitions will help the company to expand vertically and horizontally, witha significant upside.

    Zongyu Lu, Founder of Guanghua Education, declared: "We are very pleased to welcome Cathay Capital. We are convinced that Cathay’s rich resources in the US and European education industry will help Guanghua to build more connections with overseas K12 schools and education institutions."

    Mingpo Cai, President of Cathay Capital, added: "Cathay’s network in the education sector and in capital markets will help Guanghua to diversify its university pool, to provide students with more choices but also to assist the company in screening more qualified M&A targets."

  • Cathay Capital invests in Aihuishou to accelerate its strategic development Cathay Capital has agreed to invest $ 15M in Aihuishou, China's largest electronic recycling services platform. Founded in 2011, the company focuses on used cellphones, tablets, laptops and smart digital products’ recycling and provides customers with safe and convenient services to collect their idle items. Read more

    Cathay Capital invests in Aihuishou to accelerate its strategic development

    Cathay Capital has agreed to invest $ 15M in Aihuishou, China's largest electronic recycling services platform. Founded in 2011, the company focuses on used cellphones, tablets, laptops and smart digital products’ recycling and provides customers with safe and convenient services to collect their idle items.

    The 3C products recycling market is large (RMB 200bn in size) and very fragmented (800,000 recyclers from family-run store to second-hand products market place) in China. Compared to western countries, the majority of used cellphones is left idle in China, implying huge incremental market potential for second-hand phone recycling.

    Aihuishou is the first mover with largest collecting network in 3C products recycling market (155 offline stores in 8 tier 1 to tier 2 cities and probably reach 193 by the end of 2016). and The company standardizes the collecting process and , ensures data security and, solving solves the customers’ pain points, - providing convenient and trust worthy one-stop recycling services for used mobile phones and other 3C products. In addition, Aihuishou has established strategic partnership with JD, the largest 3C products online sellers in China and also yhd.com, which has further strengthened Aihuishou’s leading position and the company has gradually built brand awareness and shown scale effect.

    Based on past 5 years real transactions, Aihuishou accumulates a valuable pricing data base being able to continuously optimized e-quoting system to give more accurate and attractive prices to individual sellers. The company now recycles over 150,000 units per month, almost 10 times in volume compared to the 2nd player. The increasing bargaining power of Aihuishou enables its profitaibility improvement. Cathay Capital, through its investment and commitment of its team, aims to accelerate the development of Aihuishou in on the Chinese market and also overseasthe Chinese and also oversea market.

    Mingpo Cai, President of Cathay Capital Private Equity, declared: "Electronic products recycling meets the promising trend of circular economy and sustainable development. Our goal is to enable the company to grow further in China through Cathay local ecosystems. Cathay will also help the company with its oversea business development overseas."

  • Cathay Capital sells stake in Kunming Shenghuo Pharmaceutical Group Read more

    Cathay Capital sells stake in Kunming Shenghuo Pharmaceutical Group

     

    Cathay Capital today announces it sold its stake in Kunming Shenghuo Pharmaceutical to China Resources Sanjiu Medical & Pharmaceutical Co., Ltd., a leading Chinese enterprise in OTC, listed on the Shenzhen Stock Exchange. Cathay Capital had invested in Shenghuo Pharmaceutical in June, 2014 through its Sino-French SME Fund and Cathay Capital II Fund. During the three years between 2014 and 2016 of Cathay Capital holding, the net profit of Shenghuo Pharmaceutical rose nearly three times.

     

    Shenghuo Pharmaceutical, established in 1995, focuses on the manufacture and selling of oral cardiovascular drugs. Its main products include Xuesaitong Soft Capsule and Fibrauretinum Soft Capsule. The firm devotes to the deep processing and comprehensive utilization of the precious Yunnan medicinal herbs “Sanqi”. Shenghuo Pharmaceutical covers three series product line of Chinese medicine, cosmetics and healthy food, and has formed a modern Chinese medicine industry chain, integrating R&D, production and marketing.

     

    Cathay Capital has been actively investing in the health industry, and believes this industry has good market prospects, huge potential and is in rapid development. As a cross-border investment fund, Cathay Capital is also very involved in the development of traditional Chinese medicine and its internationalization. Cathay Capital had been in touch with Shenghuo Pharmaceutical’ two founders from 2011 and decided to invest in June 2014. Cathay’s investment contributed to improve the company’s organizational structure, its equity restructuring, diversify its product portfolio and re-focus on sustainable growth.

     

    Mingpo Cai, President of Cathay Capital Private Equity, said: “During our investment, we have been actively cooperating with Shenghuo Pharmaceutical’s team, advising and helping in terms of corporate governance, business planning, and assisting its flagship Xuesaitong Soft Capsule in passing the clinical trial and registration of the United States FDA, promoting the improvement and landing of its development strategy.

     

    The merger with China Resources Sanjiu Medical & Pharmaceutical offers new opportunities given the complementarity of the two companies in terms of industrial resources and product coverage. Cathay Capital will continue to monitor the company's development and keep its focus on the healthcare sector, where we are heavily invested and where we see many companies with significant potential.

     

  • Cathay Capital continues to support SMEs with its new Sino-French fund Read more

    Cathay Capital continues to support SMEs with its new Sino-French fund

    sff2

     

    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

     

     

     

     

  • Cathay Capital to invest along with 3i to foster Ponroy’s international development    Read more

    Cathay Capital to invest along with 3i to foster Ponroy’s international development   

    Cathay Capital today announces that it has agreed to invest €30m in Ponroy Santé Group (“Ponroy”), a leader in the natural Consumer Healthcare industry in Europe. Cathay Capital will co-invest with 3i Group plc (“3i”), who committed to invest €150m in Ponroy. Cathay Capital’s minority investment will be implemented through the MidCap fund.

     

    Ponroy was founded in 1975 and is headquartered in Boufféré, near Nantes, France. It manufactures and distributes a wide range of “natural healthcare and cosmetics products” from functional and natural food supplements (for stress control, energy and memory boosters, sleeping aids, slimming, probiotics, menopause etc.) to natural cosmetics and hygiene products for babies and women.

     

    Since inception, Ponroy has grown year on year organically without interruption to reach more than €170m of revenues. Growth has accelerated over the last 4 years above 10% CAGR on revenues. The business is well positioned due to its multi-distribution channel strategy (hyper and super markets, pharmacies and drugstores, specialized diet retailers, mail order and online sales). It owns several well-known brands, including Biolane, Vitarmonyl, and Nutrisanté.

     

    The company has 35% international sales in over 50 countries and is already present in Asia and particularly in China via the distribution of baby care products with the Biolane brand. Cathay Capital, through its investment and commitment of its team, aims to accelerate the development of Ponroy on the Chinese market, strategic for the future of company.

     

    Hervé Descazeaux, Managing Partner of Cathay Capital Private Equity, declared: "This investment is a perfect example of Cathay’ positioning and its mission of usefulness between Europe and Asia. Our role alongside 3i and the management will be to support the international development of the company and its digital transformation, through our industry knowledge and local ecosystems. Cathay will contribute in particular to strengthen the physical distribution network and develop online sales in China through an optimized digital strategy. "

     

    The transaction is subject to customary and anti-trust approvals.

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