Malaysia’s COPE Private Equity hits final close for fourth fund at $70m

Kuala Lumpur, Malaysia. Photo: Pixabay

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.

Also read:

Private equity player COPE plans to diversify LP base beyond Malaysia

Malaysia: COPE Private Equity exits Serba Dinamik

 

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.