Public Investment Fund (PIF)-backed ewpartners has entered into an initiative with Kumpulan Wang Persaraan (KWAP), Malaysia’s largest public sector pension fund, as the Saudi Arabian cross-border investment firm ropes in yet another deep-pocketed backer for its second flagship fund.
KWAP, which managed 185.6 billion ringgit ($41.3 billion) as of end-2024, will collaborate with ewpartners to explore cross-border investment opportunities between Southeast Asia and the Middle East, according to an official statement seen by DealStreetAsia.
KWAP is seeking diversification and cross-border investment growth, after the Malaysian public pension fund recorded its highest-ever investment income of 18 billion ringgit ($4 billion) in 2024, marking a total return of 12%. Its domestic investments generated returns of 12.9%, while the international portfolio delivered returns of 9%, according to its unaudited results released in February.
The collaboration with ewpartners could potentially help KWAP strengthen its overseas asset allocation, which accounted for 25.4% of its overall portfolio as of December 31, 2024. Since its establishment in 2007, KWAP’s fund size has quadrupled, with an average growth of 9.1% per annum.
“This collaboration aligns with KWAP’s strategy of seeking compelling, risk-adjusted returns in growth markets while supporting Malaysia’s broader economic agenda,” said Hazman Hilmi Sallahuddin, chief investment officer of KWAP, in the statement.
With this development, ewpartners attracts another sizeable institutional investor for its second flagship fund, ewpartners Technology Innovation Fund II, a private equity (PE) fund that aims to pour $1 billion into fuelling the expansion of technology companies in the Gulf Cooperation Council (GCC) countries.
The Riyadh-headquartered investment firm already counts PIF, the $925-billion sovereign wealth fund (SWF) of Saudi Arabia, and the Oman Investment Authority (OIA) among existing limited partners (LPs). It has fully deployed the 2020-vintage, $400-million Fund I, whose cornerstone LPs include PIF and Alibaba-backed investment platform eWTP Capital.
The partnership with KWAP marks “a significant milestone in ewpartners’ journey as we expand our presence in Southeast Asia,” said Jerry Li, ewpartners’ founder and managing partner.
Founded in 2019, ewpartners specialises in cross-border investments between Asia and the Middle East, focusing on industries such as digital infrastructure & solutions, advanced manufacturing & energy transition, and logistics & consumer enablement. Over the years, the firm has built cross-border ventures with companies like Chinese tech giant Alibaba Group and Indonesian courier service J&T Express.
Its recent deals include a February investment of $48 million in financial services company Valuable Capital Group, which owns Sahm Capital, the first fully-licensed fintech company in Saudi Arabia.
In November last year, ewpartners invested $50 million in Leshines, the supply chain solutions provider of China’s Lenovo Group, to accelerate the firm’s localisation in Saudi Arabia.
