OUR APPROACH >

EKUINAS’ PRIVATE EQUITY MODEL

Ekuinas is a commercially driven organisation with the primary objective of delivering financial value on its investments. The Company maintains strict commercial discipline by setting clear Internal Rate of Return (IRR) targets.

Ekuinas firmly believes that only through financial discipline and value can the social objectives it pursues be sustainably achieved.

As a government-linked private equity company, Ekuinas also has a social objective, which is to enhance equitable Bumiputera economic participation in the Malaysian economy, in accordance with the mandate given by the Government. To ensure the results are sustainable, the Company is committed to pursuing its goals in a market-friendly, merit-based and transparent manner.

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Ekuinas’ operating model consists of all the important functions which form the foundation of the business. Key policies were developed with the aim of ensuring a private equity practice that is on par with global standards and best practices. These policies encompass the Company’s direct and outsourced investments, the respective frameworks and guidelines, as well as those established for other areas of business including governance, disclosure, treasury, human resources, stakeholder management and communications.

Ekuinas’ investment focus is on established growth companies that demonstrate strong track records and are looking to expand to the next stage.

In order to avoid overlapping of roles between Government agencies, Ekuinas does not focus on start-ups or early stage companies which are more suited for venture capital investments and instead focuses more on established growth companies.

Ekuinas may consider investments from all sectors but six target sectors have been identified: Oil & Gas, Education, Fast Moving Consumer Goods (FMCG), Retail & Leisure including Food & Beverage (F&B), Healthcare and Services.

The Company will not, however, invest in gaming, liquor, or other illegal/unethical activities; hedge funds, derivatives or commodities; property and construction; and companies which do not contribute to the Malaysian economy.

Ekuinas’ investment selection considers medium to large sized Malaysian companies in the following categories:

*Tanjung Offshore Berhad and Konsortium Logistik Berhad were divested in 2012 and 2013 respectively.
*Icon Offshore Berhad was partially divested in June 2014 through its listing on Bursa Malaysia.

Ekuinas aims to identify all opportunities to invest in mid-sized Malaysian companies to transform and grow them into sizeable market leaders and profitable investments, after which Ekuinas will exit and apply the same process of value creation in other deserving companies.

Ekuinas undertakes its investments via two simultaneous operations:

DIRECT INVESTMENT

– where Ekuinas directly undertakes investments and focuses on larger deal sizes. These normally involve controlling or sizeable equity stakes to enable active participation and value creation for the companies and all stakeholders.

OUTSOURCED PROGRAMME

– where Ekuinas undertakes investments through third party private equity firms appointed as fund managers. The Outsourced Fund Managers (OFMs) are responsible to raise additional external capital and manage the investments.

To avoid overlap, each investment operation has a different focus.
To understand better about our Investment Framework and Guidelines, please download here

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