Emerging as a contender for investment opportunities in the technology space with its recent $30 million injection into ride-hailing app Uber, Malaysian pension fund Kumpulan Wang Persaraan (Diperbadankan) or KWAP is eyeing more such options for investment.
However, the pension fund recently, stopped short of investing in homestay aggregator Airbnb citing a tight funding requirement and timeline.
“Honestly, we did look at Airbnb, unfortunately their funding requirement is so tight and we’re not able to meet their timeline expectation, so at this moment we’re not considering,” KWAP CEO Datuk Wan Kamaruzaman Wan Ahmad said today on the sidelines of the Khazanah Megatrends Forum 2016.
He also noted that KWAP does not discount any possibility provided that it meets the fund’s investment criteria.
“One of the criteria is it must be cash flow positive with a clear exit strategy. We’re not venture capital, we’ve to fit in our profile of what we can do,” he said.
Kwap recently invested $30 million in Uber Technologies in a G series fundraising round that started last year.
The investment has brought KWAP in light for putting in money in a non-traditional asset. The fund manages $29.7 billion assets and is currently reviewing its portfolio to take on riskier investments, including doubling its allocation in private equity.
About 90 per cent of its investments are in traditional assets such as fixed income and equity while 10 per cent are in alternative investment like private equity.
The pension fund may have taken a cue from Malaysia’s government investment arm Khazanah which was also reported to have an indirect investment in Uber via a private equity fund. It is also understood that Khazanah had investments in other startups in the region.