Friday, July 9, 2010

Ekuinas picks CIMB Private Equity, KFH Asset Mgmt, Navis as fund managers

KUALA LUMPUR: Ekuiti Nasional Berhad (Ekuinas)has picked CIMB Private Equity Sdn Bhd, KFH Asset Management Sdn Bhd and Navis Capital Partners as outsourced fund managers (OFMs) to invest in Malaysian companies with high-growth potential.

Ekuinas said on Friday, July 9 the appointments were under its first tranche outsourcing programme after a selection from more than 50 firms at a "request for interest" briefing in December 2009. ''

Ekuinas chief executive officer Datuk Abdul Rahman Ahmad said under this first tranche outsourcing programme, more than RM500 million will be made available for investment, with Ekuinas expanding its allocation to RM400 million and the selected OFMs committing to raise at least an additional RM100 million from private sources.

"This will enable Ekuinas to leverage from private capital in undertaking its investments in line with government's policy of encouraging public-private partnership,' he said.

He said the outsourcing programme created the opportunity for dynamic Bumiputera companies to gain access to an enlarged pool of private capital and the opportunity to work together and partner the leading private equity firms operating in Malaysia to aggressively grow their businesses.

Ekuinas said 21 companies submitted their detailed proposals and the seven were shortlisted for detailed evaluation and from which the best ranked three firms were selected.

The outsourced fund managers underwent a rigorous evaluation process to ensure the selection adhered to global best practices.

"CIMB PE, KFHAM and Navis satisfied Ekuinas' criteria based on five key dimensions: the firms' strong investment track record, longstanding investment team experience, robust investment processes, strength in fund raising ability, and their alignment to Ekuinas' investment requirements and guidelines," said Ekuinas.

Ekuinas chairman Raja Tan Sri Arshad Raja Tun Uda said these three firms "have the necessary credentials and experience in successfully managing private equity funds to ensure the best companies are selected for investments'.

'All three firms are required and committed to investing in Bumiputera companies in line with Ekuinas' objective to enhance equitable Bumiputera economic participation through the creation of the next generation of leading companies,' he added.

According to Ekuinas strategy, the outsourcing programme will complement its direct investment activities in that it will focus on growth capital minority investments with smaller deal sizes averaging between RM15 million to RM40 million to help existing entrepreneurs take their businesses to the next level.

Ekuinas aims to invest more than RM4.5 billion in qualified companies over the next five years, with RM1 billion allocated under its outsourcing programme.

This programme will be undertaken in three tranches over a three year period, with an expected seven to 10 Outsourcing Fund Managers being appointed to manage these funds.


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