Investcorp, a global alternative investments manager, has announced the first closing at $275 million, of its Asia food brands private equity platform, which is jointly owned and managed by Investcorp, China Resources, one of the world’s largest owners and distributors of food brands in Greater China and Fung Strategic Holdings Limited, a member of Fung Investments, the private investment arm of the families of Victor and William Fung.  

The investment platform primarily focuses on capturing the growth and market opportunities in Asia’s highly fragmented food sector. Together, the partners aim to invest in the branded condiments, packaged foods and healthy snacks sectors.

Mohammed Alardhi, executive chairman of Investcorp, said: “We are encouraged by the growth factors that we see in the food brand sector in Asia, which we believe offers attractive and defensive qualities in the current environment with consumers increasingly seeking access to trusted quality food products.”

We appreciate the support from our existing joint venture partners as we continue to progress this attractive platform.”  

In the past several months, Investcorp has seen strong interest in platforms of this type given the food sector’s traditionally defensive and resilient qualities especially in the current market landscape. With 120 million Chinese households set to become middle class consumers over the next decade, China provides “once in a generation” surge in domestic consumption growth.