The Cathay family of funds, managed by New China Capital Management, consists of four funds dedicated to direct investment in China. Cathay's investors include numerous U.S. and European-based investment funds, university endowments and family offices.
Cathay typically originates and acts as the lead equity investor providing growth capital to private economy companies across a wide range of industries including consumer products, financial services, media and advertising, infrastructure, transportation, natural resources, chemicals, technology, pharmaceuticals, property development, light manufacturing and heavy industry. Where needed, Cathay provides expertise in restructuring, including restructuring offshore.
With funds from Cathay, portfolio companies are able to expand their existing operations rapidly, often doubling or tripling earnings in just a few years. Capital provided by Cathay has been used to increase working capital, enter into new business lines and regions, expand plant and equipment and otherwise reinforce a company’s strong competitive attributes to make the company more attractive for follow-on investment and for a value-realizing capital event.
Domestic Middle Market
Closely Aligned Interests
Cathay generally acquires meaningful minority equity positions in companies with proven management, strategically valuable market positions and successful operations. Cathay provides growth capital to companies seeking to expand operations across a wide range of industries.
Cathay invests in privately-owned, high-growth "middle market" companies, which stand to profit from the growth of the domestic Chinese economy and the rise of the world's largest middle class.
Cathay focuses on companies operating within "proven industries” such as consumer products, financial services, media and advertising, infrastructure, transportation, natural resources, chemicals, technology, pharmaceuticals, property development, light manufacturing and heavy industry.
Cathay develops close relationships with management and aligns incentive structures so as to ensure that both management and financial investors benefit from the successful growth and ultimate realization of value following the achievement of a capital event such as an IPO or trade sale.
The Cathay Funds
The Cathay Investment Fund, Limited ("CIF") is a closed-end fund launched in 1992.
Cathay Capital Holdings, LP ("CCH I") is a US$250 million private equity fund launched in February 2004.
Cathay Capital Holdings II, LP (“CCH II”) is a US$550 million private equity fund launched in February 2007.
Cathay Capital Holdings III, LP ("CCH III") was launched in September 2013. CCH III is currently Cathay's primary new investment vehicle.
Cathay holds particular expertise in realizing successful capital market transactions for its portfolio companies. In 2007 alone, Cathay completed five IPOs of its portfolio companies on international stock exchanges. Cathay has also facilitated numerous trade sales and private acquisitions. In 2017 alone, Cathay contracted for or completed four private events, with an aggregate value exceeding $650 million.
Cathay helps its portfolio companies maximize capital market valuations through expanding operations and building strategic value. Cathay then assists its companies to secure the best available underwriters or acquirers and works with management to initiate, manage and complete a capital event according to company needs and existing market conditions. Cathay's in-house team includes former investment bankers, lawyers, management consultants and accountants.
Cathay IPOs are managed by top underwriters including Goldman Sachs, Morgan Stanley, Bank of America Merrill Lynch, Credit Suisse, and JP Morgan. Consistent with Cathay's reputation in the marketplace, IPOs of Cathay portfolio companies are generally over-subscribed and priced at the top end of the target range. After an IPO, Cathay continues to provide strategic advice to its portfolio companies to maximize shareholder value.
Since 1992, founders and management of Cathay portfolio companies have achieved personal value of well over US$2 billion in both IPOs and private capital events facilitated by Cathay.