Cathay Life Insurance commits $100m to Blackstone

The $72bn flagship company of Taiwanese financial services group Cathay Financial has become an LP for Blackstone's latest mega-fund. Andrew Kuo, an independent non-executive director at Cathay Financial, is vice chairman of Blackstone's Greater China operations and a managing director in its Hong Kong office.

Cathay Life Insurance, one of Taiwan’s largest insurance companies, has invested $100 million in Blackstone Capital Partners VI, a $20 billion (€13.6 billion) buyout fund being raised by global alternatives manager The Blackstone Group.

An investment relations professional at Cathay Life told PEO in an email that this is not the first time the company has invested in a private equity fund, “but our underlying position is still very small”. She declined to provide further information about the company’s private equity activity.

Cathay Life Insurance started investing in third party private equity funds earlier this year, according to a source close to the company. The insurance company has also committed capital to an unlisted global infrastructure fund and a fund of funds.

Cathay Life manages about $72 billion of assets as of March 2008. It is the flagship company of the Cathay Financial Holdings group, one of Taiwan’s largest financial services conglomerates.

Other investors in Blackstone Capital Partners VI include the Washington State Investment Board, which approved a commitment of $400 million to the fund in June earlier this year.

Andrew Kuo, one of the independent non-executive directors of Cathay Financial Holdings, is a managing director at Blackstone’s Hong Kong office and vice chairman for its Greater China operations.