Malaysian public service retirement fund Kumpulan Wang Persaraan (KWAP) has selected 12 global general partners (GPs) including private equity majors Investcorp, Navis Capital Partners, Nexus Point, and The Vistria Group for allocations under its Dana Pemacu initiative, it said in a press statement.
KWAP launched the Dana Pemacu, a 6 billion ringgit ($1.3 billion) co-GP programme, to pair international and local fund managers to spur investments in Malaysia’s key economic sectors.
For the infrastructure mandate, KWAP has selected Climate Fund Managers, DigitalBridge, I Squared Capital, and Seraya Partners. For real estate, the Malaysian fund has finalised Castleforge Partners Limited, Lendlease Investment Management Pte Ltd, Savills Investment Management, and TrustCapital Advisors Investment Management Pte Ltd.
The funds, which are being channelled into private equity, infrastructure, and real estate, target sectors such as food security, education, healthcare, the silver economy, energy transition, digital economy, financial inclusion, and other priorities under the Ekonomi MADANI framework.
Dana Pemacu by KWAP is expected to play a pivotal role in advancing Malaysia’s economic transformation through the strategic deployment of diversified and commercially viable investments, to enhance the value and impact of investments by government-linked investment companies.
Seeded with RM3 billion ($640 million), the programme allocates RM2 billion each to private equity, real estate, and infrastructure, with four GPs selected per asset class. Each GP receives RM500 million ($107.4 million) and must partner with a local GP.
Senior KWAP executives told DealStreetAsia earlier that while pension funds typically avoid first-time funds due to risk considerations, Dana Pemacu helps address the lack of long-standing private market funds in Malaysia by fostering local talent and encouraging the formation of new GPs.
The co-GP model, which pairs global investment managers with local talent, aims to strengthen Malaysia’s private market ecosystem by bringing global expertise to the local market.
All global GPs have selected local partners following an assessment and are now undergoing regulatory approvals.
“We received positive interest from global GPs since the launch of Dana Pemacu, with more than 40 submissions obtained for our consideration,” said KWAP Chief Executive Officer Datuk Hajah Nik Amlizan Mohamed.
KWAP executives had stated earlier that the criteria for selecting local GPs included having a strong individual track record, ideally with around 15 years of experience in private markets such as private equity, real estate, or infrastructure.
The majority of Dana Pemacu’s investments will be deployed in Malaysia and Shariah-compliant opportunities, with the remainder allocated to international markets for diversification and long-term, risk-adjusted returns, the release stated.
