Malaysia’s Khazanah Nasional concludes MAVCAP and Penjana Kapital acquisitions

The completion of the acquisitions of Penjana Kapital and Malaysia Venture Capital Management Bhd (MAVCAP) by Malaysian sovereign wealth fund Khazanah Nasional represents a significant advancement for the country’s venture capital ecosystem.

Then, according to a statement released by Khazanah on Tuesday, it will start forming a National Fund-of-Funds (NFOF) with a MYR 1 billion ($216 million) initial allocation to use as venture capital and private equity funds for investments in creative and fast-growing startups.

The statement claims that MAVCAP and Penjana Kapital are now fully owned subsidiaries of Khazanah as a result of the acquisitions.

According to Khazanah, these calculated purchases support the two main goals of the Malaysia MADANI Budget 2024, which are to enhance public institutions and build up Malaysia’s venture capital industry.

Once completed, these projects are anticipated to improve government resource coordination and centralization, support efforts to develop Malaysia’s startup ecosystem and increase the country’s competitiveness in the region.

“The integration of MAVCAP and Penjana Kapital represents an opportunity to build on the solid foundations of these entities while implementing new initiatives aimed at further strengthening Malaysia’s venture capital ecosystem,” Khazanah Managing Director Amirul Feisal Wan Zahir said.

“By consolidating investment platforms across multiple investment agencies, Malaysia will be better positioned to ensure greater sustainability of funding, crowd-in private capital, attract regional venture capital firms into the country and catalyze strategically important sectors,

“Furthermore, the establishment of a national fund-of-funds aligns with Khazanah’s Future Malaysia Program, which aims to support the local start-up ecosystem of entrepreneurs, start-ups, venture capital, and corporate venture programs through collaboration with domestic and international partners,” he added.

According to Khazanah, it is certain that the collective expertise and assets of all the organizations will improve start-ups’ access to capital, fostering innovation and accelerating economic growth.

It stated that this aligns with Ekonomi MADANI’s goals to “raise the ceiling” through industries driven by digital innovation and assist fast-growing businesses in becoming regional leaders.

Furthermore, it stated that the KL20 Action Paper and the Malaysia Venture Capital Roadmap 2024–2030 (MVCR) both support Malaysia’s vision of being a preferred regional venture capital hub by 2030 and that this initiative is a major component of that vision.

“We recognize the contributions and commitment of MAVCAP and Penjana Kapital,

“Their vision and dedication to the venture capital ecosystem all these years have been instrumental, and we look forward to drawing on the teams’ strength and experience to achieve our collective vision of Advancing Malaysia,” concluded Amirul Feisal.