Kenanga Global Unicorn 1 provides investors access to investments stemming from future “big idea” start-ups. 

Kuala Lumpur, 17 June 2019 – Kenanga Investors Berhad (“Kenanga Investors”) has launched Kenanga Global Unicorn 1 (KGU1, “the Fund”). The Fund feeds into the Ericsenz-K2 Global Unicorn Fund (“Target Fund”) which is a unitised fund targeting superior medium term returns by investing primarily in the securities of unicorn companies.

Privately held start-up companies, with near term visibility of an IPO within 6 – 24 months or are valued at over USD$1billion, are generally known as unicorns due to their statistical infrequency.

“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 is leading the way with at least 30% of unicorns today coming from China when it used to be a term mainly associated with US-based companies,” remarked Ismitz Matthew De Alwis, Chief Executive Officer and Executive Director of Kenanga Investors Berhad.

He pointed out that this fairly recent development poses a lot of opportunities for investors to tap into, but with many unicorn companies choosing to stay private longer, they are not accessible to the everyday investor. “It is the first time that this form of private equity investment is available to investors in Malaysia. The KGU1 offers exclusive access for our clients to invest into these otherwise hard-to-reach investment opportunities”.

KGU1 aims to provide capital appreciation at the end of the Fund's maturity by investing in the Target Fund and is measured against a targeted 12% internal rate of return per annum*.

The Target Fund is managed by Ericsenz Capital Pte. Ltd (“Ericsenz Capital”, “Target Fund Manager,”) a Singapore-based venture capital and private equity firm, licensed under the Securities and Futures Act and regulated by the Monetary Authority of Singapore. It invests in high growth middle-market companies primarily within the technology, healthcare, consumer and energy sector. The Target Fund Manager works with K2 Global as its strategic advisor; a venture capital firm with access to a wide selection of late-stage private technology companies located in upcoming tech hubs.

With many unicorns emerging from within the relationship-driven Asian region, Kenanga Investors is confident that this collaboration with the Target Fund Manager will be valuable in order to leverage on Ericsenz Capital and K2 Global’s close network of commercial, strategic, investment, media and government partners in both Asia and the US.

“We are on an ongoing journey to explore new opportunities in today’s investment landscape. Therefore, the KGU1 is another exciting addition to the suite of alternative products that we carry.”

He believes that at this point in time, Malaysians are more than ready for alternative forms of investments. “KGU1 is the link between sophisticated investors and up-and-comers of the international startup community. It keeps our investors at the forefront of investment opportunities as they are given access to future big ideas and possibilities arising from these innovative companies at early stages of their growth”, says De Alwis.  

The buy and sell discipline adopted by the Target Fund Manager is not speculative and is a measured assessment of the market and macro environment to determine alpha. The Fund is suitable for sophisticated investors who have medium to long-term investment horizons. It will be available in both MYR and USD classes which offers options for investors to invest in their preferred currency. The minimum investment amount is RM100,000 (MYR class) or USD25,000 (USD class).

*This is not a guaranteed return and it is only a measurement of the Fund's performance. The Fund may or may not achieve the 12% internal rate of return per annum in any particular financial year.

Disclaimer:

Investors are advised to read and understand the Information Memorandum dated 11 June 2019 and Product Highlights Sheet before investing. The Information Memorandum and Product Highlight Sheet have been registered and/or lodged with Securities Commission Malaysia, who takes no responsibility for its contents.A copy of the said Information Memorandum and Product Highlight Sheet is obtainable at our offices or any authorised distributors. Application for Units can only be made on receipt of application from referred to in and accompanying an Information Memorandum and Product Highlight Sheet. Investors are advised to read and understand the Information Memorandum and Product Highlight Sheet and consider the fees, charges and risk factors before investing. Unit prices and distribution may go down as well as up. A Fund’s track record does not guarantee its future performance. Investors are advised to read and understand the contents of the unit trust loan financing risk disclosure statement before deciding to borrow to purchase units. If you are in doubt when considering the investment or on any of the information provided, you are advised to consult a professional adviser. Kenanga Investors Berhad is committed in preventing conflict of interest between its various businesses and activities and between its clients/directors/shareholders and employees by having in placed; procedures and measures for identifying and properly managing any apparent, potential and perceived conflict of interest by making disclosures to clients, where appropriate. The Manager wishes to highlight that the specific risks of the Fund are Liquidity Risks, Currency Risks, Country Risk, Concentration Risks, Hold to Maturity Risks and Target Fund Manager Risks. All fees and charges payable to the Manager and the Trustee are subject to the goods and services tax/sales and services tax/other taxes of a similar nature as may be imposed by the government or other authorities from time to time.