Malaysia’s Green Packet plans $120m fund with Singapore PE Kendall Court

Photo by Andrea Natali on Unsplash

Malaysia-listed information technology and communications company Green Packet Bhd is reportedly teaming up with Singapore-based private equity firm Kendall Court to roll out an RM500 million ($120.98 million) fund through a general partner setup – GP Kendall Capital Partners.

The so-called “Bumi-tech” fund seeks to back later-stage high-tech companies run by Bumiputeras (ethnic Malays and other indigenous peoples). 

“It’s in the bumiputra space where we feel that there’s an opportunity for public-private collaboration. This is where we come in terms of funding support, fostering joint ventures (JVs) and consortiums and providing the company with technical know-how and capital, ” Green Packet executive director Tan Kay Yen told local media Starbiz.  

Tan said the objective of the Bumi-tech Fund was to push the companies to upscale, expand their local and global networks and eventually export their technology products and services.

Being a limited partner, Green Packet is committing up to 20 per cent or RM100 million ($24.18 million) to the Bumi-tech fund, the first of many funds under the general partner setup.

The fund is said to be looking for commitments from investors in the public and private sectors.

Other limited partners have also voiced their commitments to park money into the fund, such as the Chinese PE fund Orient Excellent, China’s state-owned central financial enterprise China Orient Asset Management and electronic conglomerates Konka and Huaqiang Group.

The Bumi-tech fund is looking at around eight to 10 investments at RM50 million (12.09 million) to RM80 million ($19.35 million) each, according to the report. 

The fund will primarily pick significant stakes with strong minority shareholder rights including board representation. It may also selectively consider acquiring majority stakes in partnership with experienced operators or management teams. It will look at sectors such as digital services, semiconductors, tech equipment and software with a targeted return of 2 to 2.5 times, and a targeted IRR of 20- 25 per cent, Starbiz reported. 

Tan targets to hit the first close of the fund towards the first quarter of 2021 and the company is also doing due diligence on a few companies.

One of its first major investments would be in chipmaker Silterra, should Green Packet be successful in acquiring it from sovereign fund Khazanah Nasional Bhd.

Green Packet and Kendall Court have yet to respond to DealStreetAsia’s query at press time.

Started in 2004, Kendall Court has a presence in Indonesia, Singapore, the Philippines and Malaysia. Its existing funds and managed accounts focus on investing in hybrid securities ranging from debt, convertible bonds, preference shares and equity.

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.