Private equity firm CVC Capital Partners has agreed to purchase a controlling interest in Affin Hwang Asset Management Berhad (Affin Hwang AM).
Affin Bank and CVC reached a conditional share purchase deal for the same.
The deal will see Affin Hwang Investment Bank and key management shareholders transferring their entire 68.35% holding in Affin Hwang AM to Starlight Asset Sdn Bhd, a company controlled by CVC.
It values the asset management business at MYR2.25bn based on 100% equity interest.
Together, Affin Hwang AM and its Islamic fund management unit AIIMAN Asset Management, administered MYR81bn in assets at the end of December 2021.
For CVC, the transaction is its sixth investment in Malaysia since 2007. This takes the firm’s total capital invested to more than $1bn.
CVC senior managing director Alvin Lim said: “We remain confident in the strong economic fundamentals of the country, and believe this investment is an important opportunity for us to contribute to the continued development of Malaysia’s asset management industry and capital markets, as well as to grow Malaysia into the region’s leading asset management hub.”
The deal awaits regulatory nod, with completion anticipated in the third quarter of this year.
Affin Hwang AM managing director Dato’ Teng Chee Wai said: “We are excited to work with CVC, together with our longstanding partner, Nikko AM, to chart the course for Affin Hwang AM’s next phase of growth and to advance the development of the Malaysian capital markets.
“The entry of CVC, a leading global private equity and investment advisory firm comes at the right time as we continue to broaden our suite of product offerings to cater to the growing needs of our clients and partners.”