Bahrain's Investcorp Signs Deal To Invest In Asian Food Brands

Bahrain-based Investcorp, food distribution giant China Resources and Fung Strategic Holdings Limited have launched the first private equity platform dedicated solely to investing in food brands in Asia, specifically China, Singapore and greater Southeast Asia.

Fung Investments is the private investment arm of the families of Victor Fung and William Fung, the controlling shareholders of the Fung Group, the Hong Kong-based pioneer in the global consumer goods supply chain.

The new platform is aiming to raise $500 million and will be jointly owned and managed by the three founding partners, operating out of their respective offices in Beijing, Hong Kong and Singapore with $300 million of capital already committed by Investcorp, China Resources and the Fung Investments.

The investment platform will primarily focus on capturing the growth and market opportunities of China’s highly fragmented food sector.

Together, Investcorp, China Resources and Fung Investments said they 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.

China is the world’s largest and fastest growing consumer market. 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.

Hazem Ben-Gacem, co-CEO of Investcorp, said: “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."