Kenanga launches 2nd unicorn fund targeting global tech firms


KENANGA Investors Bhd (KIB) has launched the second tranche of its unicorn fund, Kenanga Global Unicorn 2 (KGU2), which will invest in globally recognised technology firms.

The fund is a follow-up to its highly subscribed KGU1 and is geared at providing medium-term capital appreciation.

The investments will target companies that have undergone transformational change from start-up to initial public offering.

“The fund targets to invest up to 10% of its remaining invested capital in equity of similar companies that have yet to reach the US$1 billion (RM4.14 billion) valuation threshold, but will develop products, processes or services that provide or benefit from equivalent technology and innovations,” KIB stated.

The fund will be feeding into the Ericsenz-K2 Global Unicorn Fund II (the target fund) and has a targeted 12% internal rate of return per annum.

The targeted 12% return is not guaranteed and is only a measurement of the fund’s performance.

The target fund will be managed by Singapore’s Ericsenz Capital Pte Ltd which is a venture capital and private-equity firm with experience in the technology, finance, venture capital and legal industries.

Ericsenz is licensed by the Monetary Authority of Singapore and will be working with strategic advisor K2 Global to leverage on the access to late-stage private tech companies in the Silicon Valley and other upcoming global tech hubs.

KIB ED and CEO Ismitz Matthew De Alwis (picture) said the fund allows investors to continue to invest in leading players in the field of technology.

“With such a solid and collaborative network in place, we continue to pave the way for our clients to invest into dominant and disruptive players within the technology revolution that the global community currently resides in,” he said in a statement.

He said KGU1 was a welcome addition to the Malaysian market which is saturated by traditional asset management products, while the fund surpassed its targeted fund size of US$20 million by over 1.5 times.

“The ability for most high-growth tech-driven platforms today to grow rapidly and sustainably has managed to maintain widespread consumer interest. Hence, its potential for continued growth makes for compelling investment opportunities,” he said.

He further cited Beyond Meats, Spotify and Twilio as examples of successful unicorn exits which delivered triple-digit gains for early stage investors.

For KGU2, KIB said the fund is suitable for sophisticated investors who have medium- to long-term investment horizons.

The fund will be available in both ringgit and US dollar classes, while the minimum investment amount is RM100,000 (for the ringgit class) or US$25,000 (for the US-dollar class).