SMC Capital backs Chinese horse-breeding company
SMC Capital China, a subsidiary of Hong Kong-based private equity and alternative asset manager Simon Murray Group, will invest an initial RMB60 million ($9.4 million) in a joint venture with Khorchin Rider Horse.
The new entity - Inner Mongolia Rider Horse Industry - will be responsible for the global expansion of Khorchin Rider, which claims to be the largest private player in China's horse-breeding industry. A second round of investment from SMC of RMB200 million is likely to happen next year, China Daily reported.
According to industry statistics and SMC's own research, China's recreational horse market is worth less than $1 billion, but growing rapidly at over 20% a year.
"Industries related to people's lifestyle consumption upgrades are growing rapidly in China. After golf and wine investments boomed in the last few years, the horse industry is coming of age in China," said Ren Zhong, investment director of SMC Capital China.
SMC leads the China private equity investments of Simon Murray Group from its Shanghai headquarters, operating both US dollar and local currency funds.
Recent investments include partnering with CMHJ Partners, Dragonrise Capital and Delta Capital last October to put RMB210 million into Chinese waste water treatment operator Jiangsiu Sanhuan Holdings for an undisclosed stake.
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