SME Fund: ISAF

SME FUND

INTRASYS SME ACCELERATOR FUND (“ISAF”)

Fund Snapshot

Type of Fund: Closed ended fund, investing in  either primary and/or secondary non quoted  share investment and is a discretionary fund managed by Intrasys.

Target Fund Size: RM100.0mil, To be launched in June 2022

Businessman holds wooden blocks with the word SME

Details

The ISAF fund is focused in Investing in start-ups/Mid Market(s) / Small Medium Enterprises involved in the Manufacturing and Industrial Products sectors as well as Services segment and Stock Market.

It focuses on investing in matured yet undervalued targets with potential assets (tangible or intangible) with upside value and has yet to be unlocked.

The fund is most suitable for Investors and LPs targeting capital gain with higher risk appetite and exposure towards thematic investment proposals i.e capital recovery, sectorial play, “black-swan” events and etc. 

With the recent events of Covid19 pandemic and the slowdown in the broader economic markets over the past 5 years across Southeast Asian markets, we have seen many mid-market and SME business owners looking to exit, in order to capitalize on the existing acceptable valuations else a typical common case of the lack of a succession plan – and with that no drive from the founders/owners to carry on the business.

The Fund intends to capture on partnering with the vendors to exit at a higher commendable (higher) valuation by way of capital market route or via a bi-lateral trade sale (to a strategic acquiror) or the opportunity for the employees of the Target Co(s) to possibly conduct a management buy-out for their long-term business continuity.

We believe mature companies in our target sectors and industries prove to be an opportunistic investment by leveraging on its:-

  • Secured market leadership position
  • Proven management track record of more than 2 years
  • Robust financial with proven cashflow
  • Entry at comparatively lower valuation multiples
  • Potential to grow by unlocking value from existing assets or market share
  • Potential of earnings visibility horizon for proven companies
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