Kenanga Investors Berhad (“Kenanga Investors”), a subsidiary of Kenanga Investment Bank, announced that it has launched Kenanga Global Unicorn 1 (KGU1), which aims for medium-term returns by investing in unicorn companies.
The fund feeds into the Ericsenz-K2 Global Unicorn Fund, which involves two VC firms (Ericsenz and K2 Global) heading the investment strategy.
It will be managed by Ericsenz Capital, a Singapore-based venture capital and private equity firm. The VC typically invests in high growth middle-market companies primarily within the technology, healthcare, consumer, and energy sector.
For K2 Global, the Silicon Valley venture capital firm will help with accessing late-stage private technology companies located in tech hubs.
Unicorns are privately held startup companies, with near term visibility of an IPO within 6 – 24 months and are valued at over USD$1billion.
“Unicorn companies were much rarer two to three years ago, but now there are between 80 and 100 each year attaining that status that is often associated with signs of a near term IPO. Asia has at least 30 per cent of unicorns today coming from China,” said Ismitz Matthew De Alwis, Chief Executive Officer and Executive Director of Kenanga Investors Berhad.
The state of unicorn startups nowadays is believed to present a lot of opportunities for investors to tap into, but many unicorn companies still choose to stay private longer, making them inaccessible to the everyday investor.
“The fund offers access for our clients to invest into these otherwise hard-to-reach investment opportunities,” De Alwis highlighted.
KGU1 aims to provide capital appreciation at the end of the fund’s maturity by investing in the target fund managed by Ericsenz Capital Pte. Ltd. It is measured against a targeted 12 per cent internal rate of return per annum, which the company disclaims as “not a guaranteed return and only a measurement of the fund’s performance”.
The official statement shares that the fund is suitable for investors who have a medium to long-term investment outlook. It will be available in both MYR and US$ classes, offering options for investors to invest in their preferred currency with a minimum investment amount is RM100,000 (MYR class) or US$25,000 (US$ class).