Another RM5 billion (US$1.27 billion) is pending under the Dana Pemacu initiative by Malaysia’s largest civil service pension fund Kumpulan Wang Persaraan (KWAP), which just announced a second Shariah cash commitment to UK’s Castleforge.
The RM500 million (US$126.58 million) funding, to be managed by Castleforge with Malaysian partner Foster Capital, focuses on real estate – matching a similar funding amount earlier granted to Climate Fund Managers (CFM) and Malaysian investment manager Argos Partners.
Funding confirmation for a third sector, focusing on PE, is expected soon. KWAP had earlier identified the qualified firms to be Investcorp, Navis Capital Partners, Nexus Point and The Vistria Group.
As the KWAP war chest has a hybrid Shariah mandate, eyes are keen on which other commitments will also be Islamic among the 12 foreign outfits shortlisted for Dana Pemacu, announced in May 2024.
Besides the climate push, the infrastructure shortlist comprises DigitalBridge, I Squared Capital and Seraya Partners. For real estate, the remainder three are Lendlease Investment Management, Savills Investment Management and TrustCapital Advisors Investment Management.
While the CFM-Argos partnership has yet to reveal investment details since the July 2025 confirmation by KWAP, its aims are to accelerate vital climate infrastructure in Malaysia and emerging markets across Asia and Latin America. Key sectors include renewable energy, transportation, digital infrastructure, water and wastewater.
Meanwhile, the real estate joint venture firm, Catenary Capital, has already signed a RM600 million (US$152.18 million) deal to develop four foreign worker quarters with a total capacity of 28,800 beds near the Malaysian capital city, Kuala Lumpur.
Separately, Castleforge is in a 25:75 partnership with another Malaysian firm, Gamuda. They are undertaking an GBP1.2 billion (US$1.6 billion) redevelopment of the former Winchester House – which used to be the Deutsche Bank headquarters.
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