Chinese PE firm AFC to invest between US$ 10 million and US$20 million in startups along with medium and large Malaysian agro related companies. These investments will be made keeping in mind the growing Chinese population and a rise in demand for food. According to reports these initiatives are not only to make capital injunctions but also to help business exports in China. AFC manages assets worth over 8 billion Yuan globally with over 70 successful investments in 30
China private equity firm AFC (Hong Kong) Investments Ltd is planning to allocate between $10 million and $20 million for investment in start-ups as well as medium and large agro-related Malaysian companies, including in food processing and farming.
Chief executive officer Steven Fong told reporters on Tuesday that the investments are being made in tandem with the growing Chinese population and attendant demand for food. “This is one of our initiatives to not only make capital injections, but also help businesses export to China,” he said. Fong said, AFC is also looking at investing in Singapore. He added that the firm has put in place a risk control plan for every investment it made in the face of the current economic conditions.
“We understand that there is a slowdown in economies and devaluation of different currencies, but at the end of the day we are talking not only about commodity products but necessity products,” he said. “The effect is not as crucial as expected.”
AFC, or Agricultural Fund of China, is established by the Chinese Academy of Agricultural Sciences, and has assets worth over $175 million. The firm is the first of its kind, specialising in the agricultural industry in China. It currently manages assets worth over eight billion yuan globally with over 70 successful investments in 30 companies. The expected fund raising size is RMB1.5 billion.