With a specific focus on investing in viable technology, private equity firm SBI Brunei is working toward attracting family offices within the Southeast Asian region to be part of its third Islamic fund.
Investment Assistant Vice-President Liza Shafiee told IFN Investor that the potential investor shortlist is currently being drawn up for the latest fund, which is expected to become operational in early 2025 with a pool of around US$100 million.
Since its formation in July 2010, SBI Brunei’s mandate has been to invest within the region in late-stage operational firms with potential to catalyze technological advances at this oil-rich sultanate – rather than just acquisitions or seeking expertise and experience transfers, explained Liza.
In furtherance of this mandate, Brunei’s Finance and Economy Ministry formed a joint-venture with Japan’s SBI Holdings – the latter being a unit of renowned investment firm Softbank. “Brunei can learn from Softbank, which is exposed to new ideas.”
Launched in late 2010, the SG$75 million (US$57.23 million) SBI Islamic Fund (Brunei) was the first collaboration – which drew equal contributions from the joint-venture partners. This fund was fully invested in three companies.
The 2013 investment in Singapore’s Stone Apple Solutions – with expertise in financial services, manufacturing plus oil and gas verticals – ended over a year later when that firm was acquired by Hitachi Consulting.
The 2014 stake in Alliance Mineral Assets, which produces corrosion-resistant tantalite mineral from its Bald Hill Mine located at the Eastern Goldfields of Western Australia, was also sold off within a year. Both these exits produced decent profits, which were returned to the original investors, said Liza.
The first fund retains its holdings in Indonesian airfreight and logistic firm Pandu Siwi Sentosa.
The SBI Islamic Fund II (Brunei) was launched in October 2016 with US$60 million with the IsDB as a third investor. This fund has invested in four firms and made three exits.
The Singapore investments were made via a 2016 holding in Sengenic Corporation – involved in diagnostic tests and therapies for human diseases – with a 2020 exit, while the 2017 stake in seafood processing firm Yamako Pacific was sold in 2023.
Malaysian investments included Penang-based eco-friendly outdoor theme park firm Sime Leisure Group (2019-2020) and internet of things solutions provider MDT Innovations, with the latter 2019 investment retained.
Liza said the focus is being expanded for the third fund to explore opportunities in Thailand and Vietnam, beyond seeking to rope in family offices, because these contacts could provide a wider network for investment review – as SBI Brunei will also be looking at early-stage firms.
While there are no concrete plans yet for future Islamic funds, Liza said SBI Brunei’s private equity investment mandate could potentially upscale with the entry of more investor-partners.
