Malaysian PE firm Ekuinas launches fourth fund at US$240 million

Thu Jan 3, 2019 - 11:08am GMT+0000


3/1/2019 – Malaysia’s state-owned private equity firm Ekuiti Nasional Bhd (Ekuinas) said on Wednesday that it has launched its fourth fund, Ekuinas Direct (Tranche IV) Fund, at MYR1 billion (about US$240 million) with an option to increase to MYR1.5 billion (about US$360 million).

This brings Ekuinas’ total funds under management to MYR4.1 billion (about US$989 million), of which MYR2.3 billion (about US$560 million) was realized following the closure of its maiden fund at the end of 2017 made up from its divestment proceeds, dividends and interests.

The fund will continue to invest in businesses based in Malaysia, targeting core sectors like education, oil and gas, fast-moving consumer goods (FMCG), retail and leisure, healthcare and services, as well as considerations in other sectors with positive prospects.

Ekuinas chief executive officer Syed Yasir Arafat Syed Abd Kadir said the launch of the fund is in line with the government-linked private equity fund management company’s strategy and business plans for the next phase.

“The 2019 Budget is seen to be facilitative and business-friendly with a strong focus to spur the Fourth Industrial Revolution (4IR),” said Syed Yasir. “The government’s effort to drive greater intra-ASEAN collaboration and trade also creates a dynamic, regional business environment, which will have positive impact on the local companies as well as the economy.”

“We see these catalysts as factors that will support Malaysia’s growth trajectory in 2019 and Ekuinas endeavours to continue delivering on its mandate in providing high-potential Malaysian companies with the building blocks to accelerate their next level of growth whilst contributing to Malaysia’s wider economic development,” he added.

A government-linked private equity fund management company established in 2009, Ekuinas aims to create Malaysia’s next generation of leading companies while promoting equitable, effective, and sustainable Bumiputera economic participation.

In 2018, Ekuinas reported acquiring a majority stake in electronic turnkey and components manufacturer Flexi Versa Group for an undisclosed amount, following the acquisition of homegrown lighting design and consultancy firm Davex Malaysia in December 2017.

The PE firm also recently exited its investment in cross-border mobile transaction gateway company Tranglo to Hong Kong-based financial services firm TNG for US$27 million, as well as sold the 100 percent equity interest in Tenby Education Group to International Schools Partnership for an undisclosed amount.