Investcorp, a Bahrain-based alternative investment fund, has teamed up with two other partners to launch a US$500m fund focused on food brands in Asia, especially China.
The other partners include China Resources, an owner and distributor of food brands in China, and Fung Strategic Holdings, which is part of asset manager Fung Investments, also based in China. The fund will also target Singapore and “greater” south-east Asia, with $300m already committed by the three participants.
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Fung Investments is the private investment arm of the families of Victor Fung and William Fung, the controlling shareholders of the Fung Group based in Hong Kong.
“The investment platform will primarily focus on capturing the growth and market opportunities of China’s highly fragmented food sector,” according to a statement. “Together, Investcorp, China Resources and Fung Investments intend to construct a diversified portfolio of investments to support fast-growing businesses with anticipated higher margins and defensive franchises, as well as new premium brands in niche sectors such as condiments, packaged food and healthy snacks.”
Hazem Ben-Gacem, the joint chief executive of Investcorp, said: “Investcorp has been actively growing our presence in Asia as part of our strategy to expand and diversify our global reach and offerings. We are extremely proud to enter into this partnership with two blue-chip investors and operators in Asia, which represents a key step to achieving our long-term growth ambitions in the region.
“We are investing not only in what we consider to be the world’s largest and fastest-growing consumer market, and in one of the most defensive sectors, but also in partnership with some of the most respected entities in China. Together, I believe that we will set the foundation for what we hope will be one of the most successful investment platforms dedicated to Asian food brands.”
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By GlobalDataThe fund will be managed and owned by all three partners from their offices in Beijing, Hong Kong and Singapore.
