Banking & Finance QIA invests in owner of McDonald’s China By Neil Halligan November 26, 2024, 8:13 PM Alamy/Lou-Foto McDonald's China has a goal of opening more than 10,000 outlets Qatari fund is anchor investor Target of 10,000 McDonald’s outlets Deal provides investors with exit The Qatar Investment Authority has invested in a continuation fund that will hold a controlling stake in McDonald’s China. Trustar Capital, a Chinese private equity firm, raised $1 billion for the fund, sources told Reuters, with the QIA, Qatar’s sovereign wealth fund, committing the largest amount, to become the anchor investor. Other investors include the Chinese sovereign fund China Investment Corp and several Chinese yuan-denominated investors, the sources said. A continuation fund is a financial vehicle used by private equity firms that allows fund managers to extend the life of their investments by transferring them into a new fund. The continuation fund will be used to provide an exit to some investors in Trustar’s private equity fund, sources told Reuters. Trustar Capital is the private equity affiliate of CITIC Capital Holdings, which Qatar Holdings invested in back in 2012. Qatar replaces chief of its $510bn sovereign fund QIA leads $125m funding round for AI startup Cresta UAE diners eat local as global fast food faces boycott The CITIC Capital and Trustar Capital consortium will hold 52 percent ownership in McDonald’s China on completion of a deal to transfer equity interest from CITIC Limited to the fund. McDonald’s China told Reuters that the “transaction further simplifies the ownership structure”. CITIC Capital said it had taken a series of measures in recent years to promote the local development of McDonald’s China through accelerating store openings, digital empowerment and localisation of the supply chain, which significantly improved McDonald’s China’s operational capabilities and financial performance. Yichen Zhang, CITIC Capital’s CEO, and chairman of McDonald’s China, said: “As the controlling shareholder of McDonald’s China, we are committed to elevating McDonald’s China to new heights and achieving our goal of opening over 10,000 stores.” Sales at US brands such as McDonald’s have been affected by boycotts, because of their perceived support for Israel. In China, McDonald’s previously said it suffered from overall weak consumer sentiment. Its most recent quarterly earnings showed a 3.5 percent fall in sales in what it calls its international developmental licensed markets. McDonald’s said: “The continued impact of the war in the Middle East and negative comparable sales in China more than offset positive comparable sales in Latin America.”
