Business / Markets

Sino-French fund raring to go

By Cai Xiao (China Daily) Updated: 2014-10-14 11:20

Sino-French equity investment fund Cathay Capital is seeking innovative and export-led enterprises in the two nations as its newest fund prepares to invest in a Chinese food company, its president told China Daily.

"We choose to invest in mature and innovative enterprises with development potential, which are also export-led and international," said Cai Mingpo, president of Cathay Capital.

According to Cai, Cathay's Sino-French Midcap Fund is planning to invest in a Chinese food company and help it expand in Europe and the United States. The average investment amount by the fund will be between 25 million euros ($31.7 million) and 50 million euros.

Cai declined to give more details about the deal as the negotiations haven't been finalized.

But he did say that Sino-French Midcap Fund will invest in sectors encouraged by the State, such as environmental protection, logistics and healthcare.

Established in June, the goal of the Sino-French Midcap Fund was to finance about 500 million euros, and 460 million euros was reached the same month. French State-owned investment bank Bpifrance and CDB Capital, a subsidiary of China Development Bank, each contributed 100 million euros to the fund.

"The future development pattern is investment, and we pay attention to the microeconomy in China and France, particularly the entrepreneurs, their characteristics and capabilities of going abroad," Nicolas Dufourcq, chairman of Bpifrance said.

"France is an open country for investors, and investments from China have increased fast," said Dufourcq. "There is no obstacle in the processes of mergers and acquisitions."

Established in 2006, Cathay Capital has managed four funds. It launched its first fund totaling around 70 million euros in 2007, of which 5 million euros came from Bpifrance.

In 2011, the second fund was set up totaling around 200 million euros.

In 2012, CDC Enterprises and CDB Capital established a Sino-French fund of 150 millions euros earmarked for small and mid-sized companies.

China's outbound direct investment to Europe totaled $5.95 billion last year, decreasing 15.4 percent year-on-year.

Sino-French fund raring to go

Sino-French fund raring to go

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