CIMB, Mitsubishi launch RM470m private equity fund

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KUALA LUMPUR: CIMB Group Holdings Bhd and Mitsubishi Corp have launched a new private equity (PE) fund, the Asean Industrial Growth Fund (AIGF), with a fund size of US$130 million (RM470.03 million).

In a statement yesterday, CIMB (fundamental: 1.05; valuation: 2.10) said the jointly sponsored PE fund will be managed by CIMB Private Equity Sdn Bhd and Mitsubishi, while the Development Bank of Japan Inc will join in as a member of the general partnership. Among its notable investors from Japan are Hitachi Ltd, Yamato Kogyo Co Ltd and The Toho Bank Ltd. Shinsei Bank Ltd will also join in as a key strategic investor, it noted.

“The AIGF is a unique platform that seeks to match the growing interest of Japanese corporates for Asean business opportunities to the strong demand for Japanese expertise among Asean corporations. The fund will identify and capture the potential synergies that can be derived from the vast business ecosystems of the distinguished partners,” the statement read.

“We are optimistic [that] our regional economy will continue to demonstrate robust growth, leading to the continued rise of the middle class who will demand better products and services. These factors are the key drivers of our investment thesis for the AIGF,” said adviser to group chief executive officer of CIMB Group, Kenny Kim.

 

This article first appeared in The Edge Financial Daily, on March 4, 2015.