Cathay Capital targets $500m for Fund III

The US- and China-based firm focuses on minority investments in Chinese companies.

Cathay Capital has launched its third fund with a target of $500 million, according to documents filed with the US Securities and Exchange Commission. 

The figure listed in the SEC filing is also the hard-cap for Fund III, according to a source familiar with the firm. Cathay’s Fund II, a 2007 vintage, collected $550 million.

Cathay Capital Holdings was the firm’s first private equity fund, which launched in February 2004 and raised $250 million. The firm’s first private equity fund is fully invested, while Fund II stopped making new investments earlier this year, according to the firm’s website.

Cathay typically makes minority investments in businesses in China, investing between $8 million and $80 million per deal. 

Cathay’s current portfolio includes household paper products manufacturer Vinda International and 999 Pharmaceutical Company, according to the firm’s website. 

Cathay operates out of Stamford, Connecticut, Hong Kong and Beijing and has completed more than 35 investments since its founding in 1992.

Founder and chief executive officer Paul Wolansky and managing director Ling Liu, a former executive at Morgan Stanley in Hong Kong, lead the firm’s US team. Cathay operating partner Hermann Leung and managing director David Selvia lead the firm’s operations in China.