Description:The Cathay Funds, managed by New China Capital Management, comprises a family of five funds that are dedicated to direct investment in China, boasting a total invested capital of approximately USD 800 million. The Cathay Funds typically take on the role of either the sole or lead equity investor, focusing on providing essential growth capital to rapidly expanding private companies across diverse industries. These sectors include consumer goods and services, technology, media and telecommunications (TMT), distribution and logistics, healthcare, and manufacturing.
The expertise of The Cathay Funds extends beyond just capital infusion; they offer valuable operational and capital market knowledge to their portfolio companies, particularly in relation to both onshore and offshore initial public offerings (IPOs) and trade sales. This strategic support empowers their investees to swiftly scale their operations, often resulting in significant earnings growth, frequently doubling or tripling within a few years.
Capital from The Cathay Funds is utilized to support a variety of initiatives within portfolio companies. This includes funding working capital requirements to sustain growth, augmenting product offerings, and entering new markets, as well as investing in plant, equipment, and other resources that enhance their competitive positioning. Such enhancements aim to make portfolio companies more appealing for subsequent investments and to facilitate eventual value-realizing capital events. Through their commitment to fostering growth and innovation, The Cathay Funds play a crucial role in the success of their partner companies in the competitive landscape of China’s economy.