Malaysia's EPF awards co-investment SMAs to global firms

The pension fund, which has MYR998 billion ($246 billion) in investment assets, described the combined mandates as the world’s largest shariah-compliant private equity direct or co-investment fund. It comprises three separately managed accounts, each of $200 million.

The fund has a 10-year life, expiring in 2031, while the investment period runs for five years. It will focus on global opportunities across growth and buyout transactions. Amanie Advisors and Zico Shariah Advisory Services were appointed to ensure all investments are shariah-compliant.

"The EPF has great confidence in the three asset managers to carry out the direct and co-investment activities on the Fund’s behalf, as they have a long history of investing into private equity and several exposures in managing shariah-compliant mandates,” said Tunku Alizakri Raja Muhammad Alias, CEO of EPF, in a statement. He added that EPF has been working on the initiative since 2018 as part of efforts to diversify its portfolio.

Established in 1951, EPF is said to be one of the oldest provident fund schemes globally. Of its MYR998 billion in assets at the end of 2020 – up 7.9% year-on-year – one-third was invested overseas. It had a 46% allocation to fixed income, 42% to equities, 7% to money markets, and 5% to real estate and infrastructure.

International private equity exposure comprises $12.05 billion in commitments across 106 active investments. As of the second quarter of 2020, EPF had 42% of its portfolio invested in North America, 21% in Europe, and 12% in China. It has previously accessed developed markets private equity through separate accounts with Goldman Sachs, Hamilton Lane, HarbourVest, and LGT Capital Partners.

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• Topics
• Southeast Asia
• LPs
• Malaysia
• EPF
• HarbourVest Partners
• BlackRock
• Partners Group
• Co-investment
• Direct investment