Rachel Lau’s Iris Capital to Raise $200M for Private Credit and Equity Expansion

Malaysia-based Iris Capital Partners is looking to raise $200 million from institutional investors for a new private credit and private equity fund, according to a Bloomberg report. The move marks the latest instance of a family wealth vehicle opening its doors to external capital.

The firm, co-led by managing partner Rachel Lau, plans to launch the fund early next year as it shifts focus away from venture capital toward more stable private market investments. Backed partly by family wealth, Iris currently allocates about a quarter of its assets from internal capital, with the remainder drawn from outside institutions.

Lau said the decision to open Iris Capital Partners to institutional investors reflects the need for more stable, long-term capital. “After a few years, everyone realises that relying only on family wealth is not enough. You need more permanent capital from insurance firms, pension funds, and sovereign investors,” she noted.

Iris, established in 2020, has so far relied on a mix of institutional support and family wealth. While family money makes up about a quarter of its assets, the bulk comes from outside institutions. Key backers include Malaysia’s sovereign wealth fund and Kim Dong-won, a descendant of South Korea’s Hanwha Group, Bloomberg reported.

While RHL backed early ventures such as Singapore’s rewards app Perx and US-based Sidestep, Lau said the unpredictability of Asian venture capital made her reconsider strategy. Iris is turning to private markets, which she describes as operating with “clearer rules” and less volatility compared to the emotional dynamics of family-driven wealth.

As part of its investment model, Iris plans to take majority stakes of 50% to 80% in international companies and support their expansion into Southeast Asia. The focus will be on bringing US and Chinese firms into markets like Malaysia and Indonesia, helping them navigate local regulations and scale operations. A recent example was an investment in biotech firm Mirxes Holding Co., which listed in Hong Kong in May.

Lau emphasised that institutional investors are often easier to work with than family offices. “Institutional capital is more straightforward—they care about financial returns without the emotional considerations,” she said. This, she added, makes partnerships more predictable and long-term.

With a 15-person team, Lau aims to position Iris as a reliable bridge between global companies and Southeast Asia’s growing markets. By shifting away from venture volatility and into private credit and equity, the firm hopes to reinforce its role as a strategic partner for international businesses seeking growth in the region.