(Yicai Global) Aug. 8 -- The first fund backed by the European Investment Fund and Silk Road Fund closed EUR600 million (USD696 million) in its first fundraising round, capturing half of the money it plans to invest in medium-sized firms with the potential for international expansion.
Cathay Capital’s Cathay Midcap II also bagged support from the China Development Bank, Bpifrance and other sovereign funds and institutional investors, the fund manager said in a statement on July 16.
The fund is the first with joint backing from the EIF and SRF after they signed a memorandum of understanding in Beijing last month, clarifying their first co-investment under the China-European Union Co-Investment Fund program. The agreement aimed to boost links between China’s Belt and Road Initiative for trade and infrastructure and Europe’s Juncker Plan to stir up private investment to promote employment and economic growth.
The Cathay Midcap II aims to support mid-sized companies with high growth potential and value creation and the capability to expand overseas. Healthcare, consumer goods, business services and high-end industries will be the primary target, covering firms in China, Europe and to some extent North America.