Malaysia's Kenanga launches late-stage VC fund
Malaysia’s Kenanga Investment Bank has launched a venture fund of undisclosed size that will invest exclusively in companies that have achieved unicorn status or are within 6-24 months of IPO.
Kenanga Global Unicorn 1 (KGU1) is a feeder fund for Ericsenz-K2 Global Unicorn Fund, a vehicle primarily focused on unicorns that is managed by Singapore-based venture capital and private equity firm Ericsenz Capital with strategic support from US-based K2 Global. KGU1 is targeting an annual IRR of 12%.
“It is the first time that this form of private equity investment is available to investors in Malaysia,” Ismitz Matthew De Alwis, CEO and executive director of the bank’s fund management unit Kenanga Investors, said in a statement. “KGU1 offers exclusive access for our clients to invest into these otherwise hard-to reach investment opportunities.”
KGU1 will be open to both Malaysian ringgit and US dollar investors, with minimum contributions set at MYR100,000 and $25,000 for each class. It will leverage Ericsenz-K2’s existing network across Asia and the US. Ericsenz-K2 aims to invest primarily in high growth middle-market companies in the technology, healthcare, consumer and energy sectors.
De Alwis noted that 80-100 companies are now attaining unicorn status each year and that Asia was the leading geography in the trend, with at least 30% of unicorns now coming from China. He added that many of these companies were choosing to stay private longer, contributing to their relative inaccessibility to investors.
“KGU1 is the link between sophisticated investors and up-and-comers of the international start-up community,” De Alwis said. “It keeps our investors at the forefront of investment opportunities as they are given access to future big ideas and possibilities arising from these innovative companies at early stages of their growth.”
Ericsenz claims its team has been investing across Asia Pacific since 2012 in areas including energy, automotive, healthcare, lifestyle, food and beverage, aviation, and corporate services. K2, which also maintains a presence in Singapore, raised $183 million for its debut fund in 2017 with a focus on Asia-US cross-border technology opportunities.
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