Cathay Capital’s private equity arm, Cathay Capital Private Equity, has announced raising €240 million (about $261 million) in the final close of its fourth small cap fund, which invests in companies across Europe, North America, and Asia.

The buyout firm’s small cap fund strategy focuses on high-growth companies, supporting them with tailored scale-up strategies, internationalisation, and the integration of cutting-edge technology, according to the announcement.

The final close of Small Cap IV takes Cathay Capital’s assets under management to more than €5 billion. The fund will invest in 12-15 companies in the healthcare, software, consumer and education sectors across Europe, North America, and Asia.

The fund aims to invest equity tickets of €15 million to €30 million mainly through minority investments alongside founders. Already, seven investments have been made through the fund, including higher education institution AD Education, pet brand Chowsing, basic apparel brand Snocks, and contract research firm Transcure.

The Small Cap IV fund is the first of Cathay’s private equity funds designated as Article 8 within the European Sustainable Finance Disclosure Regulation (SFDR) regulation framework. Article 8 applies to funds promoting environmental and social objectives, aligning it with Cathay Innovation’s and Cathay Health’s, both venture capital funds, ESG ambitions.

“Private equity has a much greater purpose beyond profit. Over the years, it’s become clear that ESG matters and economic value go hand in hand as the financial success of a company is closely correlated to the impact it has on its immediate environment, populations and the planet,” Mingpo Cai, founder and chairman of Cathay Capital Group.

Small cap is one of Cathay’s most mature investment strategies, said Fabien Wesse, managing partner and head of small cap at Cathay Capital.

“But as global economies and societies face rapid change, we have refined our approach in supporting founders in four transformation pillars: top-line growth, international expansion, digitalization and impact,” Wesse added.

Cathay Capital, founded in 2007, has completed over 260 buyout, growth, and venture capital investments. It has offices in Paris, Munich, Berlin, New York, San Francico, Shanghai, Beijing, Shenzhen and Singapore.