Managing director/regional head of RHB Asset Management Eliza Ong, April 25. 2016. GLENN GUAN/The Star
KUALA LUMPUR: RHB Asset Management (RHB AM) has formed a strategic partnership with New York-based investment firm Neuberger Berman (NB) and is launching a multi-strategy private equity fund -- the first of its kind in Asia -- that is overseen by NB’s team.
The RHB Banking Group said in a statement that the fund -- RHB Private Equity Opportunity Fund 1 -- provided investors the opportunity to participate in global private equity investments, mainly focused in the US and Europe.rovided investors the opportunity to participate in global private equity investments, mainly focused in the US and Europe.
RHB today (Wednesday) signed a strategic partnership agreement with NB, a provate, independent employee-owned global investment firm with US$243bil (RM991.1bil) assets under management (AUM) as at March 31.
Founded in 1939, NB has offices in 19 countries and employs more than 2,100 people.
RHB Group Asset Management managing director and regional head Eliza Ong said: “RHB Group AM is excited with the five year partnership which spans across Asia. Under the strategic partnership, both groups will look at leveraging on each other’s core capabilities, experience and expertise.”
The private equity fund launched with NB is offered at RM1 per unit, with a minimum initial investment of RM100,000.
RHB said the fund aimed to achieve attractive, risk-adjusted returns on capital through the investment portfolio over seven years of charter life.
“The fund will leverage on NB Private Equity’s global platform to the selected best of the best private equity strategies, including direct equity, direct private debt, opportunistic secondaries and specialty strategies. The fund serves a management fee of 2.5% of the net asset value per annum,” it said.
Ong said private equity investment fell under the category of alternative asset class which had characteristics different from traditional asset classes such as equity and fixed income.
“With Neuberger Berman’s 29 years of experience and expertise, strong relationships with more than 300 general partners (GPs) and over 14,000 private equity owned companies, we believe we can achieve long-term capital appreciation of 15%-20% gross IRR (internal rate of return) for this fund,” she added.
This fund will be overseen by NB’s team of over 100 dedicated investment professionals focused in private equity and with an AUM of US$35bil (RM142.8bil).
NB will act as a sub investment manager of the fund, responsible for all sourcing, execution and management of investments.
RHB said the strategic partnership between RHB AM and NB would include developing personalised private equity solutions for high net worth investors, while targeting middle to high teens returns with the privilege of a shorter fund duration than typical private equity funds.
Limited time offer:
Just RM5 per month.
