Malaysia’s Employees Provident Fund (EPF) has launched the world’s first and largest syariah private equity direct or co-investment separate managed account fund, with an allocation of $600 million, it disclosed.
The pension fund said in a statement the fund will have three separate managed accounts of $200 million each to be managed by BlackRock, HarbourVest Partners LLC and Partners Group AG.
The fund managers will have a global mandate that focuses on direct and co-investment strategies into growth and buyout transactions, it said.
It also said the investment period was from 2021 to 2025 while the fund term will run from 2021 to 2031, subject to extension with its consent.
Chief Executive Officer Alizakri Alias said EPF has been working on the fund since 2018 as part of efforts to diversify its investment portfolio for sustainable returns.
The pension fund’s private equity arm has 106 active investments with a total commitment of $12.05 billion, covering growth, buyout, middle-market capitalised and large-market capitalised strategies.
As of the second quarter of 2020, its top regions for private equity investments are North America, Europe and China.