Khazanah Nasional Completes Acquisition of MAVCAP and Penjana Kapital, Launches RM1 Billion National Fund-of-Funds

Malaysian sovereign wealth fund Khazanah Nasional has announced the successful completion of its acquisitions of government-backed venture capital agencies Malaysia Venture Capital Management (MAVCAP) and Penjana Kapital (PK). As per an official statement released on Tuesday, both entities will become wholly owned subsidiaries of Khazanah.

Additionally, Khazanah announced National Fund-of-Funds (NFOF) with an initial allocation of RM1 billion ($216.3 million) to invest in innovative and high-growth startups via venture capital and private equity funds. This initiative is part of Khazanah’s Future Malaysia Program, which aims to support the local startup ecosystem, including entrepreneurs, startups, venture capital, and corporate venture programs, through collaboration with both domestic and international partners.

Khazanah Nasional stated that these strategic acquisitions align with the key objectives of the Malaysia MADANI Budget 2024, which focuses on enhancing Malaysia’s venture capital ecosystem and improving public institutions. Upon completion, the integration of Malaysia Venture Capital Management (MAVCAP) and Penjana Kapital (PK) is expected to enhance the coordination and centralization of government resources. 

Khazanah Managing Director Amirul Feisal Wan Zahir emphasized that the integration of MAVCAP and PK represents an opportunity to build on the solid foundations of these entities while implementing new initiatives to strengthen Malaysia’s venture capital ecosystem further. “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,” he said.

MAVCAP, with a portfolio of approximately $1.06 billion, has previously invested in firms such as 500 Southeast Asia, Gobi Partners, and Singapore-based Lunex Ventures. Penjana Kapital’s first and only fund, which closed in December 2022 at $270 million, was previously under the Ministry of Finance. 

Khazanah’s consolidation of these investment platforms aims to create a more sustainable funding environment and attract greater private capital into Malaysia’s venture capital ecosystem.

Khazanah Nasional expressed confidence that MAVCAP and Penjana Kapital’s combined experience and resources will enhance startups’ access to capital, driving innovation and spurring economic growth. 

Furthermore, it is a crucial component of Malaysia’s ambition to become a preferred regional venture capital hub by 2030, as outlined in the Malaysia Venture Capital Roadmap 2024-2030 (MVCR) and the KL20 Action Paper. 

Khazanah’s Managing Director, Amirul Feisal Wan Zahir, acknowledged MAVCAP and Penjana Kapital’s contributions to the venture capital landscape over the years. He emphasized that their vision and dedication have been instrumental in developing the ecosystem, and Khazanah looks forward to leveraging their strengths to advance Malaysia’s venture capital objectives.

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