TheStar
KUALA LUMPUR: The response to Ethos Capital Sdn Bhd’s maiden fund, Ethos Capital One, has been overwhelming, surpassing the original RM150mil target by over 40% to RM215mil.
Ethos Capital general partner and chairman Rohana Mahmood said it would be no surprise if a second fund, that could well be above RM500mil, could be in the offing.
However, she was quick to point out that “we have to focus on the maiden fund and make sure it performs.” The second fund could be introduced late next year when 75% of the maiden fund would have been invested in growth companies.
Yesterday, Second Finance Minister Tan Sri Nor Mohamed Yakcop officially closed the maiden fund, which was first launched in March last year. Also present was Deputy Prime Minister Datuk Seri Najib Tun Razak.
Rohana said Ethos Capital felt “good” that the fund exceeded its original size and that showed that the “Malaysia story was positive” and the economic fundamentals intact.
Foreign-based funds and corporations made up 40% of the investors for the fund while the remaining were locals. US funds made up a large portion of investors for the foreign block, with the others from Hong Kong, Indonesia and India. Of the local portion about 20% were individuals.
Ethos Capital is a private equity firm that launched the fund, which made its maiden investment of RM13mil in Masterskill Sdn Bhd, a nursing and allied health college in the country.
Ethos Capital was looking to make three or four more new investments to achieve the target of 75%. Rohana said the company was now actively assessing specific opportunities in a few industries, including education, plantation, consumer products and services as well as oil and gas.
In a statement, Ethos Capital said the fund would invest primarily in Malaysia and the Asean region.
The fund was industry agnostic and targeted operating companies with proven financial track record, sustainable and innovative business models and strong growth potential, it added.
“Notwithstanding the current market sentiments, as an active value investor, we believe this is an exciting period for private equity players in Malaysia and the region.
“(We at Ethos Capital) are dedicated to helping entrepreneurs maximise the potential of their companies,” Rohana said, adding that Ethos Capital expected double-digit returns on its investments.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
