China-Israel fund raises more than $200mn

The fund, which is the first dedicated China-Israel private equity vehicle, includes a cornerstone commitment from China Everbright and had completed two investments by the end of January.

Hong Kong based-firm China Everbright Limited (CEL) in partnership with Israel’s Catalyst Private Equity has raised more than $200 million in capital commitments for their Catalyst-CEL Fund, according to a statement. 

The joint private equity fund, which is the first dedicated Israel-China private equity fund, held a first close on $100 million in March 2014, including a $75 million commitment from China Everbright.

Capital for the fund was raised from new investors including leading Chinese institutional and strategic investors, as well as leading investors from Israel, North America and Europe, according to a statement.

Launched in February 2013, the fund invests in growth-stage companies that focus on pushing their technologies in China and emerging markets. Typical investments range from $20-25 million, in industrials, manufacturing, agriculture, healthcare, water, energy, technology, media and telecommunication sectors.

Two investments have been made from the fund – a controlling stake in Lamina Technogies, an Israeli-founded, Swiss-based manufacturer of state-of-the-art, sub-micron, precision metal cutting tools, and a second investment in a 3D printing company, which was signed and closed in the last week of January 2016.

Since its investment in Lamina, the fund has worked together with Lamina’s management to expand its China footprint by establishing on the ground presence and partnering with leading Chinese state-owned and private enterprises.

“We are confident that there are many interesting opportunities between the Israeli and Chinese markets. The size of our fund confirms our assessment and shows the confidence our investors have in our strategy which makes us very proud,” said Chen Shuang, chief executive officer of China Everbright.

“Our vision is to support the growth and establishment of innovative Israeli companies as global market leaders across a variety of industries. We provide an attractive alternative to Israeli entrepreneurs selling their businesses too early and provide mature companies with the capital and support for creating larger global businesses including access to capital from China and the vast China market opportunity,” co-founder and managing partner of Catalyst Yair Shamir said.

Catalyst has about $280 million assets under management across three investment funds. Investors in the firm’s funds include HSBC, China Everbright, ABN-AMRO, Union Bank of Israel and Headway Capital, according to the firm’s website.

China Everbright, a subsidiary of the state-owned conglomerate China Everbright Group, manages over $8 billion in assets and has offices in Hong Kong, Shanghai, Beijing, Qingdao and Shenzhen.