The Cathay Capital-run fund is targeting a final close next year.

Cathay Capital’s Cathay Midcap II fund has this week announced a first close at €600m ($700m).

Cathay Capital is backed by the French government agency Bpifrance as well as China Development Bank and a number of sovereign funds and institutional investors. The fund aims to support mid-cap companies with high growth potential and the capacity to expand internationally. It is targeting a final close of €1.2bn in early 2019.