Read more: http://www.btimes.com.my/articles/20120102003744/Article/
Malayan Banking Bhd's private equity arm, Mayban Ventures Sdn Bhd, plans to invest RM1 billion in the next five years targeting companies in the traditional sector. The company also plans to be more involved in the region, where it is eyeing several sectors in China and other countries. Acting chief executive officer Andrew T.K.Ho said Mayban Ventures plans to invest in businesses like food and beverage, oil and gas, electronics manufacturing services and outsourcing. "We have plans to invest a total of RM150 million to RM250 million a year for the next five years, and to have a more regional focus by investing in other countries as well," he told Business Times in an interview last week. Ho said the companies which Mayban Ventures had invested in the past were mainly information technology companies but in the coming years, that would not be the focus anymore. "We are also not looking at investing in biotechnology companies because we feel the market is difficult in Malaysia. "Most of the talent in this sectors are mainly based abroad in markets such as the US and Europe," he added. The company is considering investing in healthcare and property businesses in China, while at the same time, looking at other countries. Ho said Mayban Ventures is also keen to invest in companies which are more private equity-focused and have ageing founders who are looking for a good deal to exit the company. "We don't mind becoming co-investors for such companies who want to do a management buy-out or buy-in," he said. He said typically, Maybank Ventures would be in the company for three to five years before exiting, and during its stint in the company, it would not hold any management control. "We need to know what we would get out of the company once we have exited, in terms of returns. And these companies really need to convince us on that bit before we get in," he said, adding that most of the investments were done via venture capital. Ho said usually, the company's internal rate of return for the exits ranges from 15 per cent to 30 per cent. The highest it has ever achieved was a 50 per cent return on an IT company. At present, he said Mayban Ventures' total fund management stood at RM500 million with 100 companies, of which they have divested most of them over the years. "Our funds are fully invested except for the latest Agro fund that has a total fund of RM150 million, where only about 30 per cent to 40 per cent has been invested," he said.
Malayan Banking Bhd's private equity arm, Mayban Ventures Sdn Bhd, plans to invest RM1 billion in the next five years targeting companies in the traditional sector. The company also plans to be more involved in the region, where it is eyeing several sectors in China and other countries. Acting chief executive officer Andrew T.K.Ho said Mayban Ventures plans to invest in businesses like food and beverage, oil and gas, electronics manufacturing services and outsourcing. "We have plans to invest a total of RM150 million to RM250 million a year for the next five years, and to have a more regional focus by investing in other countries as well," he told Business Times in an interview last week. Ho said the companies which Mayban Ventures had invested in the past were mainly information technology companies but in the coming years, that would not be the focus anymore. "We are also not looking at investing in biotechnology companies because we feel the market is difficult in Malaysia. "Most of the talent in this sectors are mainly based abroad in markets such as the US and Europe," he added. The company is considering investing in healthcare and property businesses in China, while at the same time, looking at other countries. Ho said Mayban Ventures is also keen to invest in companies which are more private equity-focused and have ageing founders who are looking for a good deal to exit the company. "We don't mind becoming co-investors for such companies who want to do a management buy-out or buy-in," he said. He said typically, Maybank Ventures would be in the company for three to five years before exiting, and during its stint in the company, it would not hold any management control. "We need to know what we would get out of the company once we have exited, in terms of returns. And these companies really need to convince us on that bit before we get in," he said, adding that most of the investments were done via venture capital. Ho said usually, the company's internal rate of return for the exits ranges from 15 per cent to 30 per cent. The highest it has ever achieved was a 50 per cent return on an IT company. At present, he said Mayban Ventures' total fund management stood at RM500 million with 100 companies, of which they have divested most of them over the years. "Our funds are fully invested except for the latest Agro fund that has a total fund of RM150 million, where only about 30 per cent to 40 per cent has been invested," he said.
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