Malaysia’s sovereign wealth fund Khazanah closes London office: Report

The Khazanah Nasional office.

Malaysia’s $39-billion sovereign wealth fund Khazanah Nasional Bhd has closed its London office to redirect its focus on Asian investments, according to a report by The Sunday Times.

Based on an email sent to investors and sighted by The Sunday Times, the fund has quietly closed its doors of the London office at the end of last month.

Khazanah has not responded to DEALSTREETASIA‘s request for comment.

The decision to shut the fund’s London operations, which has about 10 staff, is within expectations as Khazanah’s managing director Shahril Ridza Ridzuan had earlier said that he was considering to do so in order to cut operating costs.

One of the fund’s notable investments in the European region was London-based augmented reality startup Blippar. The startup had filed for insolvency last December, after Khazanah was alleged to have blocked an emergency fundraising by the startup as the funding round would have diluted its shares.

Shahril had also said Khazanah will look to scale down its operations in Turkey.

Formerly CEO of Malaysia’s largest pension fund, the Employees Provident Fund (EPF), Shahril was appointed to lead Khazanah last August, following the formation of the new government under prime minister Mahathir Mohamad.

This March, Khazanah announced a refreshed mandate to grow Malaysia’s long-term wealth amidst an ongoing restructuring, which will see the fund classify its assets into separate commercial and strategic funds.

Earlier this month, it divested $255 million worth of shares in one of its strategic assets – electric utility company Tenaga Nasional Bhd. A spokesperson said the sale is part of Khazanah’s ongoing strategy to restructure its portfolio. All the proceeds will be used for the fund’s balance sheet and reinvestment purposes.

In addition, the sovereign wealth fund is working to help Malaysia’s loss-making national carrier Malaysia Airlines Bhd (MAS) to turn around its business. MAS, which is fully-owned by Khazanah, had missed its target to breakeven last year, causing the fund an $1.78 billion impairment loss in 2018.

Also read:

Malaysia’s Khazanah unveils refreshed mandate after a weak 2018

Malaysian state fund Khazanah divests shares worth $255m in Tenaga

 

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.