Malaysian boutique investment firm Emissary Capital has bagged $25 million from state-run firm Penjana Kapital for its growth fund, per an announcement.
The growth fund, called Emissary Capital Growth Fund 1 (ECGF I), is seeking to raise $50 million in total. It was launched last month by Emissary Capital and New Wave, a subsidiary of Philippines-based IP E-Game Ventures.
New Wave has committed to invest up to $7.5 million in the growth fund as a limited partner (LP) and will co-manage the fund with Emissary.
ECGF I will invest in technology companies in Southeast Asia in sectors including agritech, fintech, healthcare, and other key digital verticals. It also seeks to identify and back cross-border investment and expansion opportunities between Malaysia and the Philippines.
Penjana Kapital was established in July this year by the Malaysian government to bring funding from international and local investors into the local venture capital space. It had in September invited requests for proposals (RFPs) from VCs as part of the Dana Penjana Nasional (DPN) programme.
On Monday, Malaysia’s Finance Minister Tengku Zafrul Abdul Aziz announced that the DPN programme had exceeded its initial target of 1.2 billion ringgit ($290 million)—half of this was to come from the government—and now plans to invest 1.57 billion ringgit ($387.2 million) into local startups.
The government selected eight foreign VCs to partner with local VCs for the DPN programme, Zafrul said in a Facebook post. These VCs will focus on seed, Series A/B and growth-stage investments as well as venture debt.
Penjana Kapital is also tasked with assessing the progress and impact of the various funds under Prihatin Rakyat Economic Stimulus Package (PRIHATIN) and the National Economic Recovery Plan (PENJANA).