IFC commits $45m to two China funds
The International Finance Corporation (IFC), the investment arm of the World Bank, has committed $45 million between two Chinese PE funds.
IFC's commitment includes an investment of up to $30 million in Hosen Investment Fund III, the latest vehicle from Hosen Capital, and up to $15 million in the debut fund of Long Hill Capital Management. The Hosen investment is not to exceed 20% of the fund's total commitments, according to a disclosure.
Hosen launched its fund last year with a target of $400 million. The firm has a strong focus on agriculture and industry, along with adjacent consumer sectors; its new vehicle will focus on companies that support Chinese consumption and either operate in or directly supply consumers in China. IFC contributed $20 million to its predecessor, New Hope Agriculture and Food Fund II, in 2013, and backed the firm's RMB1 billion ($162 million) New Hope Agricultural Investment Fund in 2010.
Hosen invests at all stages of the food value chain, including agricultural inputs, processing and manufacturing, logistics and retail. Its portfolio companies include Australian beef processor and exporter Kilcoy Pastoral, which it bought in 2013, subsequently purchasing US beef processor Ruprecht as a bolt-on.
Long Hill, founded earlier this year, plans to invest in early stage health and consumption services-oriented companies that are based in or whose primary business activities are located in China. The target size of its fund has not been disclosed. IFC said in its disclosure that it would be investing along with established institutional investors.
IFC expects its support of Long Hill in its first fund to lend credibility to the vehicle and the GP. It also plans to use its investment experience in the region to help the firm make connections across borders. Given IFC's investments in Asia's healthcare sector and particularly in mobile health technology, Long Hill sees IFC as a source of strategic support as well.
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