Bpifrance, CDB Capital launch 450m euro fund

Bpifrance and a subsidiary of China Development Bank have launched a 450 million euro (US$615.75 million) fund to invest in medium-sized Chinese and European companies, a statement said on Monday.

The establishment of the Sino-France Midcap Fund follows an agreement Bpifrance and CDB Capital reached in March during President Xi Jinping's visit to France.

Bpifrance and CDB Capital each contributed 100 million euros to the fund, which is managed by Cathay Capital. The fund also attracted investment from institutional investors and entrepreneurs.

The fund will close when reaching 500 million euros.

"This midcap fund heralds a significant new phase for Franco-Chinese cooperation in the area of private equity investment, especially in midcap companies, which we feel is a particularly promising segment presenting numerous opportunities," Fan Haibin, President of China Development Bank, said in the statement.

The fund will invest in companies through significant minority stakes and occasionally through majority positions, the statement said.

In 2012, Bpifrance and CDB Capital launched a 150 million euro fund to invest in small Chinese and French companies.