Malaysia-based private equity firm COPE Private Equity, formerly CMS Opus Private Equity, has achieved final close for its fourth vehicle, COPE Opportunities IV, at $70 million in October, this portal has learnt.
The firm is now working on a few potential investments for its latest vehicle, which has the support of Malaysian pension funds and existing backers. In terms of exits, COPE will be looking at perhaps a trade sale or IPO for some of its portfolio companies in the next 12 to 18 months.
According to its website, COPE has three Malaysian companies under its current investments portfolio, including aluminium and zinc die- casting business STX Precision, convenience fruit store retailer MBG Fruits Holdings, and school uniform manufacturer and distributor My-Sutera Holdings.
COPE has declined to comment.
DEALSTREETASIA understands that COPE IV will be cutting check sizes between $5 million and $20 million – a relatively under-served market segment within Malaysia – with a typical holding period of three to five years.
In view of multiple political and economic uncertainties, the PE firm prefers to invest in consumer-related sectors such as energy, healthcare, education, food and beverage and peripherals like medical devices and maintenance engineering services.
COPE IV was launched in 2016 and had a first close at RM200 million ($48.2 million) last October and a second close at RM275 million ($66.3 million) early this year. Its predecessor, a 2013-vintage vehicle, COPE Opportunities III, was closed at RM80 million ($19 million) and has been fully deployed.
As of the fourth quarter of 2017, COPE I and COPE 2 have achieved gross IRR of 13.9 per cent and 52.4 per cent, with realised money multiple of 1.7x and 3.5x, respectively.
Early this year, COPE fully exited engineering solutions provider Serba Dinamik Holdings Bhd after holding on to that investment for about four years. Serba Dinamik went public on Bursa Malaysia last February and raised about $140 million. The full exit generated an IRR of 79.2 per cent and a multiple of 8.9x on the $9 million invested in June 2013, having covered more than the cost of its investment.
In 2017, the firm also exited its 29.37 per cent stake in water meter manufacturing business Damini Corporation via redeemable convertible preference shares, a company in which it had invested back in 2015.
Established in 2005, COPE boasts a total AUM of over RM500 million ($120.5 million) across five funds, and has been focused on investing in small and mid-cap growth companies in Malaysia with a regional presence. It is backed by government-linked private equity firm Ekuinas and is 51 per cent controlled by local conglomerate Cahya Mata Sarawak.