Affinity Equity Partners is said to invest US$123 million into a joint venture with Beijing Capital Agribusiness Group, a Beijing-based Chinese state-owned agriculture conglomerate, according to Chinese media reports.
Beijing Capital Agribusiness, also called Sunlon, will spin-out its dairy farming business into the joint venture. Sunlon will take 60% of the JV, while Affinity will take the remaining 40%.
The JV will operate 32 farms with 46,000 head of cattle, which currently account for 60% of the Beijing region’s milk supply.
Affinity Equity Partners is formerly the private equity arm of UBS AG. It span out of UBS Capital Asia Pacific in 2004, and manages US$4 billion.
Sunlon was formed in 2009 by merging Beijing Sanyuan Group, Beijing Huadu Group and Beijing Dafa Livestock Corporation with the approval of the Beijing government.