KUALA LUMPUR: Kenanga Investors Bhd launched the Kenanga Global Unicorn 1 (KGU1) which is a feeder fund for the Ericsenz-K2 Global Unicorn Fund which targets superior medium term returns by investing primarily in the securities of unicorn companies.
Kenaga Investors said on Monday KGU1 aims to provide capital appreciation at the end of the fund's maturity by investing in Ericsenz-K2 and is measured against a targeted 12% internal rate of return per annum.
Privately held start-up companies, with near term visibility of an IPO within six to 24 months or are valued at over USD$1bil are generally known as unicorns due to their statistical infrequency.
Kenanga Investors CEO and executive director Ismitz Matthew de Alwis pointed out unicorn companies were much rarer two to three years ago, but now there are between 80 and 100 each year attaining that status that is often associated with signs of a near term IPO.
“Asia is leading the way with at least 30% of unicorns today coming from China when it used to be a term mainly associated with US-based companies,” de Alwis said.
This fairly recent development poses a lot of opportunities for investors to tap into, but with many unicorn companies choosing to stay private longer, they are not accessible to the everyday investor, he said.
“It is the first time that this form of private equity investment is available to investors in Malaysia. The KGU1 offers exclusive access for our clients to invest into these otherwise hard-to-reach investment opportunities,” he said.
Ericsenz Capital Pte Ltd is a Singapore-based venture capital and private equity firm, licensed under the Securities and Futures Act and regulated by the Monetary Authority of Singapore.
It invests in high growth middle-market companies primarily within the technology, healthcare, consumer and energy sector. It works with K2 Global as its strategic advisor; a venture capital firm with access to a wide selection of late-stage private technology companies located in upcoming tech hubs.
“We are on an ongoing journey to explore new opportunities in today’s investment landscape. Therefore, the KGU1 is another exciting addition to the suite of alternative products that we carry,” de Alwis said.
He said Malaysians are more than ready for alternative forms of investments.
“KGU1 is the link between sophisticated investors and up-and-comers of the international startup community. It keeps our investors at the forefront of investment opportunities as they are given access to future big ideas and possibilities arising from these innovative companies at early stages of their growth”, says De Alwis.
The fund is suitable for sophisticated investors who have medium to long-term investment horizons. It will be available in both ringgit and US dollar classes which offers options for investors to invest in their preferred currency.
The minimum investment amount is RM100,000 or US$25,000.