Buoyed by huge demand, Kenanga Investors – the asset management subsidiary of Malaysian lender Kenanga Investment Bank – has launched Kenanga Global Unicorn 2 fund offering investors an opportunity to back unicorns and earn mid-term capital appreciation.
The second fund comes barely five months after Kenanga Investors launched Kenanga Global Unicorn 1 (KGU1) which surpassed its targeted fund size of $20 million by over 1.5x.
KGU1 targets startups with near-term visibility of an IPO within 6–24 months or are valued at over $1 billion.
The new fund will invest primarily in securities of globally recognised technology companies who have undergone a transformational change from startup to initial public offering (IPO) – ready entities, otherwise known as “unicorns”, according to a press statement.
It invests up to 10 per cent of its remaining invested capital in equity securities of similar companies that have yet to reach the $1 billion valuation threshold, but will develop products, processes or services that provide or benefit from equivalent technology and innovations.
KGU2 said it is suitable for sophisticated investors who have medium to long-term investment horizons. The fund will be available in both MYR and USD classes which enables investors to invest in their preferred currency. The minimum investment amount is RM100,000 (MYR class) or USD25,000 (USD class).
Similar to KGU1, KGU2 is also managed by Ericsenz Capital, Singapore-based venture capital and private equity firm which invests in middle-market companies in the technology, healthcare, consumer and energy sector.
Ericsenz will work with Silicon Valley and Singapore-based venture capital firm, K2 Global as its strategic advisor to access late-stage private technology companies in upcoming tech hubs.
“The ability for most high growth tech driven platforms today to grow rapidly and sustainably has managed to maintain widespread consumer interest; hence its potential for continued growth makes for compelling investment opportunities”, said Ismitz Matthew De Alwis, Executive Director and Chief Executive Officer of Kenanga Investors Berhad.
In March, Kenanga Investors Berhad acquired fund manager Libra Invest for a provisional purchase consideration of 50.1 million ringgit ($12 million).