The partnership between Newton Hexon Capital and PMB Investment will see monies already sourced from Hong Kong to be invested in a Shariah compliant manner into green economy projects within Malaysia.
PMB Investment Acting Chief Investment Officer Hang Tuah Tajudin told IFN Investor that investments will be channeled via the recently-announced US$50 million Newton Hexon Asia Growth Fund to catalyze greenfield project developments like solar farms.
“This close-ended fund may become the first of many as Newton Hexon Capital sees Malaysia as having a huge potential for implementation of environmentally-sustainable solutions. Identifying the right investment targets is the main challenge.”
Assessments conducted by PMB Investment will help overcome this hurdle, explained Hang Tuah, as the Malaysian firm will review project proposals from both the private and public sectors – including those from its ultimate parent of MARA Group, a government agency to foster entrepreneurship.
With the Newton Hexon Asia Growth Fund’s launch, PMB Investment is open for submissions in the potential investment sectors of renewable energy, energy efficiency, waste-to-energy, hydrogen generation, electric vehicles and urban farming.
Hang Tuah said the Shariah investment channel was insisted on by the Hong Kong firm to ensure the widest possible range for projects to invest in, given the close association between ESG and Islamic values plus the rising prominence of ethical financing awareness in the Southeast Asian region.
“Despite strong demand for ESG projects, it can be difficult to obtain funding due to the high-risk factors inherent to still-emerging technologies and processes. Newton Hexon Capital is familiar and comfortable with such risks, providing us with expertise that complements our due diligence.”
With a pipeline of investors already secured, Newton Hexon Capital may consider expanding its investment purview beyond Malaysia with PMB Investment as a strategic partner.
“The immediate focus within Malaysia also helps to boost the expansion of PMB Investment into the Shariah compliant private equity space, which can become the launchpad for the later regional push.”
