TAP, KWAP invest in Malaysian snack maker

The size of the investment was not disclosed. This is the first direct deal completed by KWAP's private equity arm.

Munchy, which was founded in 1991, is one the country's largest biscuit manufacturers, responsible for brands such as Oat Krunch, Lexus, Muzic and Captain Munch. Muzic wafers and oat-based Oat Krunch biscuits are the biggest-sellers in the Malaysia market, while the company also sells its products in 45 countries globally.

The business is led by its founders, the Tan brothers, alongside an experienced senior management team. Following the investment, TAP and KWAP will leverage their regional networks to support further expansion of Munchy.

"The collaboration with TAP is part of our strategy to co-invest with GPs which we have invested in and the Munchy Group co-investment reflects our confidence in the Munchy's brand and the consumer sector. We have seen Munchy's as a brand grow over the years and have confidence in the management to be able to tap into the growth opportunities in Asia," Wan Kamaruzaman Wan Ahmad, CEO of KWAP, said in a statement.

TAP is an alternative asset investment and management group based in Kuala Lumpur. Malaysia, Thailand, Singapore and Indonesia are the primary countries of interest, with a focus on consumer plays such as food and beverages, education, healthcare, lifestyle, media and entertainment.

It is currently investing the Dragonrider Opportunity Fund II, which has completed a first close and has a full target of $250 million. KWAP committed $20 million to the fund.

KWAP had 18 GP relationships at the end of 2013 and MYR816 million ($249 million) devoted to private equity out of a total portfolio of MYR99.9 billion. Within Asia, it has also backed funds raised by Affinity Equity Partners, Saratoga Capital, Ancora Capital, Advent Private Capital, Asiasons and Lombard Asia.

Last year, KWAP won approval to boost its international investments from 10% of the portfolio to around 19%. As a result, the 1% PE allocation has jumped to 2%, with a further 1% for infrastructure. KWAP will deploy 6% in overseas equities, 5% in fixed income securities and 6% in real estate.

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• Topics
• Consumer
• Southeast Asia
• Expansion
• Co-investment
• KWAP
• LPs
• Southeast Asia
• Consumer
• Growth capital
• Malaysia
• Tremendous Asia Partners (TAP)