KUALA LUMPUR: New World Capital Advisors (NWCA), a London-based merchant banking and investment firm, is expected to establish its presence in South East Asia (SEA) with Malaysia being a strategic hub for the firm.
Co-founder and managing partner Adam Sadiq confirmed that the process of establishing NWCA's presence in SEA was currently underway, part of its continued plans to expand its investment portfolio in the region.
"We are now expanding our business within SEA to capitalise upon economic growth and to meet growing demand from our Limited Partners (LPs). Malaysia is a strategic market for which we are finalising our business plan" he told the New Straits Times when contacted recently.
Sadiq said NWCA's foray into the technology and asset management sectors in SEA would complement the company's existing investments globally.
"We have previously invested in Asia Pacific on behalf of our LPs and are now dedicated to expanding our company's footprint within the region by establishing our offices," said Sadiq.
He said NWCA's expansion plans would also facilitate its existing investors in the region through its managed assets and General Partners (GPs).
Sadiq unable to disclose an exact amount when asked on its potential investment in Malaysia due to the private nature of the firm's investments.
"We plan to invest long term strategic capital to SEA and Malaysia, allocating across key sectors including asset management and technology. We are special situation investors and deploy at various stages of an entity's growth cycle," he said.
Headquartered in London, NWCA's Malaysia office will serve as its regional hub as the company expands its business into SEA.
"The Malaysian market is important to NWCA as it offers a large consumer base, a burgeoning small and medium enterprises (SMEs) ecosystem and strong talent pool," he said.
Sadiq said Malaysia and the region is an attractive destination as it offers a different value proposition compared to the developed markets across asset management and technology.
"We are currently finalising our plans (office in Malaysia). Private equity investment in Malaysia is supported by strong underlying demographic and economic fundamentals as ascertained from the deals in the region as well as an increase in deal value with multiples valuation.
"We believe this trend will continue as the region develops, supported by young and growing - digitally savvy populations, an ecosystem favourable with open to investment and the potential for investors as well as companies to achieve commercial scale and equity upside," he said.
NWCA has over US$2.5 billion in assets under management (AUM) and acts as a fiduciary to institutional and sovereign capital.
Meanwhile, NWCA had recently appointed Lena Tan to its board of directors to strengthen its leadership team inline with future growth plans.
Tan is currently the chairman of 7-Eleven Malaysia Sdn Bhd and director of 7-Eleven Malaysia Holdings Bhd and Singer Malaysia chairman.
She also serves as a director at Berjaya Retail, Razer Fintech, Berjaya Fintech, and Berjaya Credit. Prior to her formal appointment, Tan had supported NWCA founders, Sadiq and Zeiad Idris, in an advisory capacity.
Tan joins a group of partners and advisors to NWCA who together bring decades of experience and expertise from a variety of industries including energy, technology, real estate, fast-moving consumer goods (FMCG), asset management, banking, and natural resources.
"We are delighted to welcome Lena to the board. As we prepare to bolster our asset management capabilities through GP acquisitions and scale into new geographies, it is important that our senior team has a combination of strategic vision, forward-thinking creativity, and experience," said Sadiq.
He added Lena was a highly respected executive with an outstanding track record in driving growth at leading corporations across both developed and emerging markets.
Idris said NWCA excited to formalise the appointment of Lena to the board, bringing her wide-ranging experience, from strategic planning to finance and business expansion.
He said Lena will be a tremendous asset for our management team as we continue to build a market leading specialist investment firm.
Previously, NWCA has made a number of strategic investments, including the launch of its GP programme by taking a GP stake in real estate investor The Valesco Group, which has grown its AUM of about EUR2 billion.
NWCA had also obtained regulatory approval to complete the acquisition of a Swiss Asset Management licence.
The firm will be acquiring further equity interests via strategic growth capital in the best performing and up-and-coming GP teams across private equity, infrastructure and private debt in Europe, the US, and Asia.