Investcorp, which counts Abu Dhabi's Mubadala Investment Company as its biggest shareholder, closed a $275 million (Dh1 billion) first funding round for its food sector-focused private equity platform as it looks to expand its portfolio of investments.
The investment vehicle aims to invest in the growing, but fragmented food sector in Asia, the company said in a statement on Monday.
Investcorp along with China Resources – one of the world’s largest owners and distributors of food brands in Greater China – and Fung Strategic Holdings, initially announced plans to launch a $500m fund targeting this market in November.
“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,” said Mohammed Alardhi, executive chairman of Investcorp.
The partners plan to explore investments opportunities in the branded condiments, packaged foods and healthy snacks segments of the food sector in Asia.
With 120 million Chinese households set to become middle-class consumers over the next decade, China provides a "once-in-a-generation" surge in domestic consumption growth, according to Investcorp.
The Manama-listed asset manager is looking to further boost its assets in the food sector across the US, Europe and the broader Middle East and North Africa region, including Turkey.
The company’s investments include Saudi Arabia’s supermarket group, Bindawood Holding, Fortune Fish & Gourmet, a US specialty distributor of seafood and gourmet food products and Tiryaki Agro, which is involved in the trading and supply of agricultural commodities in Turkey.
“We believe there is strong market demand for defensive, resilient and growing investment opportunities in the current landscape," said Hazem Ben-Gacem, co-chief executive of Investcorp and chairman of the vehicle’s investment committee.
"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."
Investcorp's portfolio of investments span a broad range of sectors and industries. The company last week acquired German cybersecurity company Avira for $180m.
Since its inception in 1982, Investcorp has made over 195 private equity deals in the US, Europe, Asia, and the Mena region. it has also made more than 800 commercial and residential real estate investments in the US and Europe, with a total transaction value of $61bn.
Last month, it acquired the Coca-Cola Company’s Belgian headquarters for €88m (Dh362m), marking its first foray into the country and its first European sale and leaseback deal.
