CITIC Capital Partners, a private equity fund manager, has found a strategic partner in Bright Food Group, an affiliate company of CITIC Group, to launch a China-focused food fund. CITIC, which stands for China International Trust & Investment Company, is an established brand name in and outside China.
CITIC Capital and Bright Food will hold equal stakes in the 2 billion yuan ($250 million; €193 million) private equity fund targeting opportunities in raw material, research, production, packaging and retail businesses in China’s food sector, according to Bright Food.
Xu Yongxin, a spokesman for the company was quoted on Reuters as saying the food company’s contribution toward the fund is part of a three-year investment expansion program.
The venture with CITIC Capital follows a separate cooperation agreement signed with Indonesian conglomerate Salim Group for overseas expansion.
Bright Food was the result of a government-directed merger of four state-owned food companies in Shanghai.
In April, CITIC Capital closed its first third-party private equity fund for China on $425 million.