Hosen Capital, a private equity firm backed by Chinese agribusiness conglomerate New Hope Group, has completed a final closing for its third fund with total capital commitments of US$440 million, the firm announced last Friday.
The new vehicle, which focuses on consumption driven opportunities in food and agribusiness in China, was oversubscribed and closed after eight months in the market with support from a diverse range of institutional investors from the U.S., Europe, the Middle East and Asia.
"With the closing of Fund III, we are very well positioned and appropriately resourced to continue to capitalize on fundamental mid-market opportunities in the global food and agribusiness value chain that are helping to drive consumption and growth in China, where today food represents almost a quarter of household expenditures," said Alex Zhang, co-founder and managing partner of Hosen Capital.
In August 2016, China Money Network reported that the International Finance Corporation (IFC) committed up to US$30 million to Hosen’s third fund. According to Chinese media reports, limited partners in the new vehicle also include New Hope Group, JD.com Inc., Asia Alternatives and China Oceanwide Holdings Group Co., Ltd.
Some of the companies Hosen has invested in include Beijing-based online food ordering and delivering service provider Etaoshi, U.S. beef processor and retailer Ruprecht Company, and Australia’s fourth biggest beef processor Kilcoy Pastoral Company.
The firm also invested in a number of dairy companies including New Group’s own dairy unit, Chinese hotpot restaurant chain Haidilao, fast food chain Jiahe Yipin, seafood supply chain company Asia Sea, Chinese irrigation company Xinjiang Huili and agriculture big data company Beijing ACSM.
Hosen Capital was founded by Chris Wang and Alex Zhang, and is headquartered in Beijing with offices in Chengdu, Shanghai and Guangzhou. It has US$2.31 billion in assets under management currently.
Eaton Partners served as advisor and exclusive fund placement agent, and Clifford Chance acted as legal counsel to Hosen in the offering of Fund III.