SBI Islamic Fund II (Brunei) Limited and Malaysia’s COPE Private Equity have jointly invested up to $14.25 million in Malaysia-based MDT Innovations, the latter said in an announcement on Monday.
The capital will be used to support MDT Innovations’ research and development, enhance its product quality, expand its business and maintain its competitive edge as it seeks to become a market leader in the Internet of Things (IoT) industry.
Founded in 2004, MDT Innovations focuses on IoT value chains ranging from intelligent wireless communications, IoT as a service, to neutral network solutions, the company offers services in the key domains such as crowd movement, things management and fintech enablement.
“We are pleased to be partnering with COPE and SBIF II, two leading institutions to support the growth of MDT Innovations. We believe MDT Innovations is uniquely positioned to tap the huge market that is IoT in Asia-Pacific,” said MDT Innovations CEO Liew Choon Lian.
COPE Private Equity managing partner Azam Azman commented: “MDT Innovations is a Malaysian company with world class technical know-how in the IoT industry. We are excited to partner with Liew and his talented team and look forward to support their growth in the years to come.”
The investment was made out of COPE Private Equity’s fourth fund. DEALSTREETASIA had reported that the vehicle, COPE Opportunities IV achieved its final close at $70 million in October 2018. The firm will be looking at a trade sale or IPO for some of its portfolio companies this year.
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. The fund 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.
Meanwhile, SBI Islamic Fund II is a shariah compliant private equity fund managed by SBI (B) Sdn Bhd, a joint venture fund management company established by Brunei’s Ministry of Finance and Economy (MOFE) and Tokyo-listed SBI Holdings Inc. One of the LPs of the fund which has the mandate to invest into a diverse range of late-stage companies across Asia is Jeddah-based Islamic Development Bank.