VC, PE investment activity soars to RM613.3 mil in 2018

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KUALA LUMPUR (March 14): Malaysia’s venture capital (VC) and private equity (PE) investment activity jumped 46.8% to RM613.3 million in 2018 from RM417.8 million in 2017, despite a decline recorded in commitment funds to RM6.1 billion during the year from RM7 billion previously.

The Securities Commission Malaysia (SC) in its 2018 annual report said the decrease in commitment funds was largely due to de-registration of major VC.

It said cumulative investments stood at RM3.1 billion at the end of 2018, up from RM2.5 billion a year before.

In addition, the number of investee companies also increased to 387 last year from 381 in 2017.

“Public funds remain the largest source of capital for the industry with government agencies and investment companies making up 40.2 per cent, while sovereign wealth funds contributed 30.2 per cent,” the SC said.

Meanwhile, private sector contribution to the industry was led by corporate investors (10.8%), asset managers (9.7%), as well as individual investors and family offices (5.1%).

The SC said the three top corporations by amount of investor commitments were Xeraya Capital, Malaysia Venture Capital Management Bhd and COPE Private Equity Sdn Bhd.

Overall, a total of 117 corporations were registered last year, comprising 105 venture capital players and 12 private equity companies.

They include RHL Ventures Sdn Bhd, Sun SEA Capital Sdn Bhd and V V P Advisors (Malaysia) Sdn Bhd. — Bernama