CMS Opus aims for $133m AUM via 16 new investments this year

Cover of Cahya Mata Sarawak's 2014 annual report.

Malaysian private equity firm CMS Opus Private Equity Sdn Bhd aims to increase its assets under management to MYR500 million ($133 million) from the current MYR300 million ($80 million) through investments in 16 more companies this year.

Managing director Azam Azman told Malaysian Reserve that the firm’s portfolio now includes eight companies involved in the manufacturing, services or retail sector space.

“The manufacturing companies tend to be of sole proprietorship and they have good assets,” he told local media at the sidelines of the 2015 Southeast Asia Venture Capital and Private Equity Conference earlier this week.

CMS Opus has a target of 10 per cent return on equity for its investments, with a 30 per cent investment return drawn so far, with the return on earnings (ROE) from its last exit standing at 2.5 times.

Commenting on exit startegies, Azam said PE firms look at a variety of exit options apart for the listing option.

“PE can do a trade sale or a share buy-back. There is no generalization to IPO. Usually when the economy slows down, the merger and acquisition activities pick up. That is the time for PE to cash-in on investments,” said Azam.

CMS Opus is the PE arm of Bursa Malaysia-listed Cahya Mata Sarawak Bhd. It has previously focused on the oil and gas sector, but DEALSTREETASIA reported in March that the firm has divested all its oil and gas related portfolio.

In January this year, the firm exited its 2011 investment in Trisystems Engineering Sdn Bhd, with a capital return of MYR22,212,688 ($6.2 million) representing an internal rate of return of 30.03 per cent and a money multiple return of 2.47 times.

CMS Opus acquired a 20 per cent stake in Trisystems in April 2011 for MYR9 million ($2.5 million), through its COPE-KPF Opportunities 1 fund.

Trisystems is leading in the field of process instrumentation and control, filtration and combustion in Malaysia. It also offers automation systems, process packages solutions and provides custom engineering design, assembly, testing, installation, commissioning, support and training primarily for the oil and gas industry. CMS Opus’ investment has benefited Trisystems in securing double digit growth over the span of the investment horizon.

In March this year, CMS Opus acquired a 30 per cent stake in utility and water related player Damini Corporation Sdn Bhd through its COPE Opportunities 2 fund. The proceeds from the investment will be utilised for merger and acquisitions and as growth capital.

The principal activity of Damini is supplying chemicals, reagents, equipment for water treatment, water meters, engineering services to the water distributors, chemical solvents and marine gas oil for the oil and gas industry.

Local media had reported that Damini plans to grow through acquisitions, supported by CMS Opus’ capital injection.

For the financial year 2014, CMS Opus returned investment capital amounted to MYR10.17 million.

Also read:

CMS Opus divests all O&G investments, to amp up diversification strategy

Series A to B space in Malaysia being filled up gradually: MVCA

Malaysia’s Ekuinas targets 20% IRR for 2015

Ekuinas records more than 15% IRR for both funds in 2014

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.