Cathay Capital launches $239m fund targeting China’s energy sector

Visual from New Energy Solar's website

Private equity platform Cathay Capital Private Equity has launched a $239-million (RMB1.5 billion) fund to focus on investments in  emerging technologies and new business models in the Chinese energy sector.

The cross-border investor Cathay Capital has partnered energy company Total’s venture capital arm Total Energy Ventures and Chinese state government-backed Hubei High Technology Investment Guiding Fund Management Co Ltd, for the fund.

The three parties signed the heads of agreement to launch the new vehicle, Cathay Smart Energy Fund, according to an announcement on Wednesday. Both Total Energy Ventures and Hubei High Tech will invest around $50 million (RMB 300 million) each in the vehicle.

The fund will tap opportunities in renewable energy, energy internet, energy storage, distributed energy, smart energy and low carbon activities.

“We believe that it represents a significant growth and innovation potential in areas of new energies and sustainable development and resonates with Total’s ambition to become the responsible energy major,” said Patrick Pouyanné, Chairman and CEO of Total.

The energy sector globally is going through a shift and population-heavy countries like China have emerged as countries leading the change amid its growing need for energy. In fact, China’s solar boom is said to have played a major part in the global clean energy investment surge in 2017 which reached its second-highest ever figure at $333.5 billion, according to a recent Bloomberg New Energy Finance report.

Chinese spending on clean energy in 2017 increased by 24 per cent from the previous year to $132.6 billion, setting a new all-time record. Most of the investment, around $86.5 billion, was spent on solar, up 58 per cent from the previous year.

This is Cathay Capital’s second RMB fund after the launch of its $227-million vehicle that focused on China’s automobile sector. That fund had cornerstone investments from Yangtze River Industry Fund and French auto supplier Valeo.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.