Malaysia's Affin Hwang seeks to add $5.5b assets in 3 years

Malaysia's Affin Hwang seeks to add $5.5b assets in 3 years

Teng Chee Wai, managing director of AHAM Capital.

Malaysian investment manager Affin Hwang Asset Management has rebranded to AHAM Asset Management (AHAM Capital), and is aiming for 100 billion ringgits (nearly $22 billion) in assets under administration (AUA) by 2025, it said in a statement. The move follows the completion of its majority sale to Luxembourg-based alternative investment firm CVC Capital Partners.

AHAM Capital said that it is looking to strengthen its wealth management capabilities, including alternatives and private market offerings, and striving for a regional presence.

From an AUA of 20 million ringgits in 2001, the firm has expanded its assets to over 75 billion ringgits as at the end of October 2022.

AHAM Capital offers products across equities, fixed income, money market instruments, structured products, and other alternative assets. In private equity, it invests through Bintang Capital Partners, a wholly-owned unit.

Bintang Capital is planning to raise a larger second fund next year, after closing its 300-million-ringgit BCP Asia Fund I earlier this year, the company’s founder and CEO Johan Rozali-Wathooth told DealStreetAsia recently.

For AHAM Capital, its next journey will entail embarking on three strategic growth pillars of wealth management, innovation, and regional expansion across Southeast Asia, said Teng Chee Wai, managing director of AHAM Capital.

“We will also harness innovation to support the development of digital-focused solutions that will democratise access to investment products for all client segments,” he said.

In January this year, CVC Capital Partners agreed to acquire approximately 68% of the equity interest in AHAM Capital. The transaction was later completed in July, following which AHAM Capital ceased to be a subsidiary of Affin Hwang Investment Bank.

AHAM Capital is also 27% owned by Nikko Asset Management International Limited, a wholly-owned subsidiary of Tokyo-based Nikko Asset Management.

CVC Capital Partners invested in AHAM Capital through its $4.5-billion Asia Fund V. Mergermarket reported earlier this year that the PE powerhouse was seeking as much as $6 billion for its next Asia vehicle.

In Malaysia, CVC Capital Partners is still holding stakes in funeral and bereavement care provider Nirvana and fast-food operator QSR.

Its other Southeast Asia portfolio businesses include Soho Global Health, Fast Logistics, Razer, Ngern Tid Lor, Asia Commercial Bank, and Phuong Chau Hospital, among others.

CVC Capital Partners is not alone in European investors seeking expansion in Asia. In October, Swedish private equity group EQT completed the acquisition of Hong Kong-based Baring Private Equity Asia to create BPEA EQT. Meanwhile, Paris-listed alternatives asset manager Eurazeo has officially opened a Singapore office to scout for more opportunities in Southeast Asia.

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