Mubasher: Investcorp on Monday announced the launch of its first Asia food brands private equity platform that largely focuses on capturing the growth and market opportunities in Asia’s highly fragmented food sector at $275 million. 

The vehicle 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, according to a press release.

The three partners aim to invest in the branded condiments, packaged foods, and healthy snacks sectors.

As about 120 million Chinese families are likely to become middle-class consumers over the next ten years, China is seen to provide “once in a generation” surge in domestic consumption growth.

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

Moreover, Co-CEO of Investcorp and the chairman of the vehicle’s investment committee, Hazem Ben-Gacem, concluded, “We believe there is a strong market demand for defensive, resilient, and growing investment opportunities in the current landscape. Along with our blue-chip partners in China Resources and Fung Strategic Holdings, we have deep experience in the food sector and we know the space well. We believe that investing in growing food brands in the world’s largest consumption market.”