Update: Black Soil postpones China agri fund set-up

Chang Sun, who has been worked in private equity for more than 20 years, decided to set up Black Soil in July 2015 saying he wanted to do something that “made an impact”.

Warburg Pincus Asia-Pacific’s former chairman Chang Sun has temporarily postponed plans for a $1 billion China agribusiness fund to focus instead on his agriculture and investment operating company, Black Soil, Agri Investor reports.

Black Soil finance manager Andy Cheng told Agri Investor that as most potential limited partners want to see “proof of concept”, Black Soil decided to postpone fundraising for a closed-ended fund and instead focus on completing the first two investments.

Sun clarified in an email that “we postponed the blind pool fund to allow time to prove our concept, while keeping the fund raising open and continuing to talk to investors.”

“Some investors like this type of direct investment, which would give them a first-hand look at agriculture investment opportunities in China,” Cheng said. 

The company has raised about 80 to 90 percent of its 500 million yuan ($76 million; €70 million) target, he added.

Read more by visiting http://www.agriinvestor.com.

This story was orginally published on 3 February and amended on 4 February to clarify that the fund raising has been postponed not abandoned.