PETALING JAYA: Ekuiti Nasional Bhd (Ekuinas), the government-linked private equity fund management company, recorded a gross portfolio return of RM582.9mil for its Ekuinas Direct (Tranche II) fund last year.
In a statement, it said the fund generated an annualised gross internal rate of return (IRR) and net IRR of 13.5% and 9.6%, respectively.
Meanwhile, Ekuinas Direct (Tranche III) Fund recorded a gross portfolio loss of RM170.5mil, translating to a negative annualised gross IRR of 10.8%.”
Ekuinas said the performance of this fund was affected by the reduced valuations of several portfolio companies. It has put in place stringent and comprehensive value creation initiatives to enhance the competitiveness of these companies
“Ekuinas was selective in deploying capital and channelled its investment efforts toward follow-on investments.
“Within the year, the company committed a total of RM205.9mil, which includes RM20mil investment in Orkim Sdn Bhd, RM183mil in Icon Offshore Bhd and RM2.9mil in Exabytes Capital Group Sdn Bhd.”
To date, Ekuinas said it had undertaken cumulative investments in 41 companies, representing a total investment of RM4.1bil.
“With that, it has also generated a positive impact on the broader Malaysian economy, which facilitated a total economic deployment of RM4.8bil together with private sector partners.”
In the same statement, Ekuinas chairman Tan Sri Arshad Raja Tun Uda said 2019 was a milestone year for the group, as it commemorated the 10th year since its inception.
“Our aim remains to be the partner of growth for Malaysia’s next generation of leading companies while promoting equitable and sustainable bumiputra wealth creation and economic participation through the private equity (PE) model.”
In terms of social objectives, Ekuinas positively increased the overall bumiputra equity ownership to RM5.4bil, which is 1.5 times the capital invested, leading to an increase in total shareholder value of RM6.9bil, translating to 1.9 times of the capital invested.
“Ekuinas also increased the bumiputra talent pool in its portfolio companies, with management and employees recording a rise of 23.5% and 14.1%, respectively since Ekuinas’ entry.”
Chief executive officer Syed Yasir Arafat Syed Abd Kadir (pic) said the PE industry reflected a significant change in deal numbers over the last decade, recording an almost five-fold growth rate.
“Globally and in Malaysia, market dynamics have shifted and have seen a significant transition in capital allocation from public to private markets. PE as an asset class in Malaysia has come a long way and I am glad to see that the vibrancy of the PE industry has improved tremendously since 2009.
“I believe our track record speaks volumes of our achievements, given our mandate of investing only in Malaysian companies.
“We remained focused on our objective in developing local mid-sized companies to create regional industry leaders. We hope to continue executing the same strategy for more high potential Malaysian companies to enter the next phase of growth.”
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