Private equity fund CVC buys 68% of Malaysia’s Affin Hwang Asset Management for $367.54m

Feb 4, 2022 | News

Luxembourg-based private equity firm CVC Capital Partners is buying 68.35% of Affin Hwang Asset Management, Malaysia’s third largest asset manager, from the controlling shareholder and senior management of the Kuala Lumpur-based firm for a total $367.54m cash through its Asia fund.

CVC Capital Partners Asia Fund V is paying Affin Hwang Investment Bank $340m  for its entire 63% shareholding in the asset management firm, which had 81 billion ringgit of assets under management as of end-2021.

The fund is buying another 5.35% from senior management of Affin Hwang Asset Management for 29m.

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Affin Bank, the investment bank’s listed parent, announced the sale in a filing to the Malaysian stock exchange on January 28.

The deal is expected to be completed in the third quarter.

Nikko Asset Management International Ltd, a unit of Japan’s Nikko Asset Management, will remain the second largest shareholder in Affin Hwang Asset Management, with an unchanged 27% stake.

The senior management’s shareholding will be whittled down to 4.65%.

According to Affin Bank President and Group Chief Executive Officer Wan Razly Abdullah, the deal “is testament to the confidence in the growth prospects of the financial services sector and the Malaysian economy as a whole”.

“With the continuation of the management of Affin Hwang Asset Management helmed by Managing Director Teng Chee Wai and the institutional shareholding presence of Nikko Asset Management, we believe that the business of Affin Hwang Asset Management will continue to perform well moving forward,” he says in a separate statement on January 28.

Teng adds that CVC’s entry 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”.

“We look forward to partnering with CVC and Nikko Asset Management to drive our commitment to our valued clients,” he says.

Source: Asia Assets

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