The Employees Provident Fund (EPF) said it had launched a syariah private equity (PE) direct and co-investment separate managed account (SMA) fund with an allocation of US$600 million (RM2.43 billion). This is the world’s first and largest syariah private equity SMA fund, said the EPF in a statement today.

Through the allocation, the EPF will have three SMAs of US$200 million each to be managed by three private equity fund managers — BlackRock, HarbourVest Partners LLC and Partners Group AG — with a global mandate that focuses on direct and co-investment strategies into growth and buyout transactions. The investment period is from 2021 to 2025, while the fund term will run from 2021 to 2031, subject to further extensions with the EPF’s consent.

“We are proud to be the first institutional investor to establish a syariah-compliant PE direct and co-investment fund, and this is the largest of its kind globally, with a global investment mandate. The EPF has been working on this initiative since 2018 as we seek to diversify our investment portfolio to ensure we can provide sustainable returns to our members,” said chief EPF officer Tunku Alizakri Alias.

Read more/Source: The Edge Markets