WIDURI Capital Management Sdn Bhd (WCM), a private equity management corporation registered with Securities Commission (SC), has launched a RM100 mil private equity fund known as the Widuri Intisar Fund which targets sophisticated/high net worth individuals by virtue of its minimum capital contribution of RM250,000.
The launch of the fund, which forecasts specified target returns of 12% per annum to investors, is part of WCM’s group-wide private equity strategy that focuses on three key economic sectors, namely mining, agriculture and construction.
The fund’s executive chairman Prof Ahmad Zakie Ahmad Shariff is least concerned of the timing of its roll-out, but is instead adamant that “anytime is a good time”.
“Our quality of life has been pushed down by inflation that has climbed as high as 3.3% (due primarily to escalating food and energy prices). Hence, our Widuri Intisar Fund is here to help our investors grow their wealth,” he told a media conference after the launch of the fund.
“After all, this is the sole purpose of our fund whereby Intisar (part of our fund’s name) in Arabic simply means ‘victory’ or ‘being triumphant’ (against inflation).”
According to Ahmad Zakie, the fund aims to provide local companies in the mining, agriculture and construction sectors with greater access to alternative source of funds from the local private equity market.
Its key investment criteria include readiness of the projects to be executed, steady cash flow and high returns from the undertaken projects. “The instrument for investment shall be in the form of equity, debt or a hybrid of equity and debt,” he pointed out.
For now, the fund’s two maiden investments are the 500 acres of the tin mining project in Pengkalan Hulu (Perak) and a Musang King durian plantation in Raub, Pahang.
The capital required for the tin mining project (managed by RBA Engineering (M) Sdn Bhd) shall be utilised to build infrastructure and mining facility, which is targeted to commence in June 2022 as the mining certificate has been obtained and operation can commence immediately with the first production of raw tin scheduled in September 2022.
Meanwhile, the capital required for a Musang King durian plantation in Pahang shall be allocated towards the development and plantation of Musang King durian variety.
“With regard to the Musang King durian plantation project, we note that China’s ever-growing demand for durian is expected to drive the global trade growth for the durian industry with demand set to exceed US$24 bil (RM105.35 mil) by 2030,” projected Ahmad Zakie.
The Widuri Intisar Fund will be administered by a credible trusted in Amanah Warisan Bhd (AWARIS) with the fund backed/secured by assets which are three times the value of the fund.
AWARIS currently manages 25 trust accounts with assets under management (AUM) valued at RM500 mil. – June 1, 2022
