Cathay Capital raises €240m for Small Cap IV fund, focuses on ESG goals

Cathay CapitalCathay Capital Private Equity announced the closing of its fourth Small Cap fund at €240 million, with the intention to support growth companies across Europe, North America, and Asia.

This latest fund takes Cathay Capital’s assets under management to more than €5 billion.

The Small Cap IV fund stands out as the first of Cathay Capital’s private equity funds to be recognized as an Article 8 fund. This distinction means that the fund aligns with the company’s overarching Environmental, Social, and Governance (ESG) ambitions.

The investment team will apply exclusion filters during the selection process and set specific objectives for portfolio companies to integrate responsible, sustainable business practices such as diversity, decarbonization, and governance.

Founder and Chairman of Cathay Capital Group, Mingpo Cai, stressed the growing importance of ESG factors and economic value as intertwined elements of financial success.

He stated that Cathay Capital aims to foster real change in industries and create the world of tomorrow with Small Cap IV, turning Small and Medium Enterprises (SMEs) into game changers and promoting a positive societal and economic impact.

Since its inception in 2007, Cathay Capital Group has completed over 260 buyouts, growth, and venture capital investments. Over the past 15 years, the firm has developed a global ecosystem that combines investors, SMEs, startups, and large corporations, providing comprehensive sector and local market knowledge.

The Small Cap fund strategy is committed to supporting high-growth companies through bespoke scale-up strategies, internationalization, and technological integration. Small Cap IV will invest in 12 to 15 companies across the healthcare, software, consumer, and education sectors in Europe, Asia, and North America.

The fund has already made seven investments in entities such as AD Education, Chowsing, Snocks, and Transcure.

Fabien Wesse, Managing Partner and Head of Small Cap at Cathay Capital, highlighted the firm’s investment philosophy, which leverages Cathay’s global ecosystem and in-depth understanding of local markets to transform small organizations into global champions.

The company aims to continue supporting founders in developing value-creation drivers for a fast and sustained growth trajectory.

Cathay Capital Group, a global investment firm founded in 2007, now manages over $5B in assets with a global reach from offices in Paris, Munich, Berlin, New York, San Francisco, Shanghai, Beijing, Shenzhen, and Singapore.

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