Investcorp launches $500m PE fund focused on Asia’s food sector

Tim Zhang, Chief Investment Officer of China Resources Capital Management (left) and Hazem Ben-Gacem, Co-CEO of Investcorp

Editor’s note: This story was amended 10.10 am SGT Thursday after the companies issued an updated press statement that they are targeting to raise $500 million for the new fund and have so far committed $300 million to it. 

Bahrain-based alternative asset manager Investcorp has partnered with China Resources and Fung Strategic Holdings Ltd to launch a $500-million private equity fund focused on food brands in Asia, especially China, Singapore, and greater Southeast Asia, according to a statement.

Investcorp, China Resources and Fung Investments have already committed $300 million of capital to the new fund, which will be jointly owned and managed by its three founding partners.

The investment platform will primarily focus on capturing the growth and market opportunities of China’s highly fragmented food sector, with China Resources being one of the world’s largest owners and distributors of food brands in Greater China.

Fung Strategic Holdings is also a major player in the global consumer goods supply chain through Fung Investments, the Hong Kong-based private investment arm of the families of Victor Fung and William Fung.

The fund seeks to build a diversified portfolio of investments to support fast-growing businesses with anticipated higher margins and defensive franchises. It also seeks to invest in premium brands in niche sectors, such as condiments, packaged food, and health snacks.

The launch of the Asia food brands-focused fund comes as China, one of the fund’s target market, remains the world’s largest and fastest-growing consumer market. The market is poised for further growth as Chinese millennials spend more on premium and healthier brands.

“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,” said Hazem Ben-Gacem, Co-CEO of Investcorp.

On Wednesday, Investcorp and Hong Kong-based China Everbright announced the combination of their China-focused investment teams to jointly manage a recently launched fund targeting the country’s tech startups.

The combined teams and investment committees of the two companies will manage the China Everbright New Economy Fund I. Investcorp had last year agreed to invest up to $150 million in the fund’s second round in a deal marking its first private equity investment in China.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.