In a deal that reinforces the trend of private equity firms moving investments into agriculture and food in China, Private equity firms Yunfeng Capital and CITIC Private Equity Fund Management have agreed to invest 2 billion yuan (US$320 million) to purchase 60% of the Inner Mongolia Yili Livestock Development Co. Ltd – a unit of Inner Mongolia Yili International Group Co. Ltd. which is one of China’s biggest milk powder producers. This will be the first investment in China’s food industry for Yungeng Capital which recently closed a new investment fund after raising $1.1 billion. The firm’s past investments focused on technology, media, and telecommunications.
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