KUALA LUMPUR (Sept 15): State investment arm Khazanah Nasional Bhd has to date made a total of 15 investments worth approximately US$410 million in the United States, principally in the technology sector.
In a statement today, Khazanah said in line with its policy to progressively diversify its investment portfolio overseas, it opened Khazanah Americas Incorporated in San Francisco in September 2013, with a focus on the innovation and technology sector.
“The San Francisco office is the third of Khazanah’s five foreign offices, the others being in Beijing, Mumbai, Istanbul and London,” it said.
Khazanah issued its statement following media reports after Prime Minister Datuk Seri Najib Razak’s recent visit to Washington.
“Our investments in the United States represent 1.3% of Khazanah's portfolio Realisable Asset Value (“RAV”) of RM145.3 billion as at Dec 31, 2016,” it said.
Khazanah asserted it practices a strict process of origination and evaluation of investment proposals, involving detailed due diligence and multiple investment gates, before submission to the Khazanah Board of Directors for consideration and approval.
“Overall, long-term value creation from our investment portfolio remains steady, with our portfolio Net Worth Adjusted (“NWA”) having increased 3.1 times, or growing at a compounded annual growth rate (“CAGR”) of 9.3% per annum, for the period from May 2004 to Dec 31, 2016,” Khazanah said.
“In line with our mandate as a strategic investment fund that creates long-term value for Malaysia via multiple sectors and geographies, Khazanah will continue to explore investment opportunities in the United States, focusing primarily on the innovation and technology sector,” the statement said.