Iris Capital Partners, a private credit solutions firm based in Malaysia, plans to raise $200 million from institutional investors, as reported on Tuesday. This marks the latest family wealth fund to open up to outside investors.
The firm is seeking cash for a new private credit and private equity fund, according to managing partner Rachel Lau.
“Everyone realises after a couple of years that just having families invest is not enough,” she said. “You need more permanent capital from insurance, pensions, and sovereign funds.”
Founded in 2020, Iris is seeking to launch the private markets fund early next year. Today, family capital accounts for approximately 25 percent of the firm’s assets, while the remaining assets come from third-party institutions. Anchor investors of Iris include Kim Dong-won, a scion of the family behind South Korea’s Hanwha Group, and Malaysia’s sovereign wealth fund, according to the report.
Lau is the daughter of the late Lau Boon Ann, who made his wealth in real estate and was an early investor in Top Glove Corp Bhd, the world’s largest rubber glove maker.
She is also the Co-Founder of RHL Ventures, a venture capital firm established in 2016 with partners Raja Hamzah Abidin (son of the former Malaysian politician Raja Nong Chik) and Jojo Kong (daughter of David Kong, founder of Nirvana Asia Ltd., one of Asia’s largest funeral service companies).
RHL is a Malaysia-based VC firm that invests across Southeast Asia. Along with South Korea’s KB Investment Co Ltd, RHL manages The Hibiscus Fund, which is part of Malaysia’s Dana Penjana Nasional (DPN) Program — an economic recovery plan. Under this program, the government matches foreign and private VC fund investments on a 1:1 basis, with a total allocation of up to 1.2 billion ringgit ($290 million).
For Lau, moving into private credit is a new step. She believes institutional investors are often easier to work with compared to other family investors.
According to the report, she plans to take majority stakes of 50 percent to 80 percent in international companies and help them with their expansion in Southeast Asia. For example, US and Chinese businesses are coming to Malaysia and Indonesia. Recent deals include an investment in biotech firm Mirxes Holding Co., which listed on the Hong Kong Stock Exchange in May.
Relative to a family office, “institutional capital is easier because they’re more clear with what they want. It’s all about financial returns; there are no emotions”, Lau was quoted as saying.
Lau said founding Iris is her push to move away from the volatility of venture capital towards what she termed the clearer rules of private markets.
Venture in Asia has been rough. For us, it makes more sense to invest in private credit and private equity, and we will slowly pare down the venture exposure,” she was quoted as saying.
Read more- Cumin Co. Raises $1.5 Million in Funding Round Led by Fireside Ventures
