(Changes "firm" to "fund" in last paragraph)
LONDON, June 30 France and China have launched a
midcap private equity fund to boost investment and exposure
between the two following a visit by the Chinese president to
France earlier this year.
The Sino French midcap fund has reached a first close of 460
million euros ($627.5 million), its backers Bpifrance, China
Development Bank (CDB) Capital and Cathay Capital said on
Monday, in line with its target final close of 500 million
Bpifrance, a part state-owned French fund, and CDB Capital
agreed to be cornerstone investors in the fund in March this
year. It will be managed by Chinese-French private equity house
Cathay Capital. The companies launched a similar 150
million-euro fund focused on SMEs in 2012.
"Chinese companies will be able to benefit from advanced
technological expertise which is well-developed in France,
while, in turn, French companies will gain from increased
exposure to the booming Chinese consumption market," said Haibin
Fan, president of China Development Bank.
The fund, which will target growth and international
expansion for French, Chinese and European companies, is being
marketed under the name Cathay Midcap Growth Fund III.
($1 = 0.7331 Euros)
(Reporting by Freya Berry; editing by Mark Heinrich and Tom