07 November 2019
Bahrain-headquartered alternative investments manager Investcorp announced on Thursday that it has partnered with China Resources, one of the world's largest owner and distributor of food brands in Greater China, and Fung Strategic Holdings, a member of Hong Kong-based Fung Investments, to launch the first-ever private equity platform dedicated to investing in food brands in China, Singapore and greater Southeast Asia.

The statement said the new platform is aiming to raise $500 million of capital with a $300 million commitment already in place from the three founding partners.

The statement said fund would be jointly owned and managed by the partners operating out of their respective offices in Beijing, Hong Kong and Singapore.

The investment platform, the statement noted, will 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, Co-CEO of Investcorp, said in the statement that they 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."

With 120 million Chinese households set to become middle class consumers over the next decade, China provides a potential "once in a generation" surge in domestic consumption growth, the statement noted.

(Writing by Madhura Deulgaonkar; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

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