Hosen Capital to close third fund by year end – exclusive

Hosen Capital is about to close its third fund, Hosen Investment Fund III, above its $400 million target, according to a source familiar with the matter.

The source said the Beijing-based firm, which focuses on food and agribusiness companies, will close the fund before the end of the year on an undisclosed amount and that it is significantly oversubscribed. The firm set both the target and hard-cap for the fund at $400 million.

Eaton Partners, the placement agent for the fund, declined to comment on the fund close. Hosen Capital wasn't immediately available to comment.

Some of the limited partners in the new fund include New Hope Group, Asia Alternatives, Pavilion Capital and the World Bank's International Finance Corporation, according to the source. Existing LPs include Temasek and Mitsui.

Hosen, which was founded in 2010, will continue its strategy of making consumer-focused investments in food- and agribusiness-related companies in and outside of China. The firm is led by founding partners Hang Wang and Alex Tianli Zhang.

Portfolio companies include China's Xinfadi, a wholesale market of agricultural products in Beijing; Ruprecht Company, a US protein processor company; and Kilcoy Pastoral Company, an Australian beef producer. 

The firm is sponsored by New Hope Group, which operates agribusiness in China and abroad. The group is a feed producer and also one of the largest suppliers of meat, egg and dairy products in China.

Hosen Capital has raised three funds prior to Hosen Investment Fund III. It has at least $2.31 billion in assets under management.