VCorp Capital’s new Shariah fund bridging financing gap of Malaysian SMEs

Established in 2020, Malaysian PE investment firm VCorp Capital has expanded its focus from conventional funds investing in high-growth and pre-IPO companies to launch a Shariah fund that can help SMEs bridge a financing gap.

Launched on the 14^th July 2025, Managing Partner Rex Fong told IFN Investor the VPI Secured Capital Fund was introduced as the firm received many requests from potential client SMEs for alternate financing options which could be deployed faster than bank credit approvals.

“Disbursement after bank documentation and approval process can sometimes take three to six months for new financing clients. This fund can help bridge that gap as we adopt a faster approach when accepting property as security.”

Financing amounts typically range from RM500,000 (US$118,670) to RM1 million (US$237,410), which the fund caps at 50% of the pledged asset. The repayment period would be six to nine months for firms operating in Malaysia – with plans to also tap other Southeast Asian nations like Indonesia, Thailand and Vietnam.

Based on the restricted Wakalah bi Al-Isthmar concept, this fund is aimed at sophisticated investors with a minimum RM250,000 (US$59,360) entry – with a target of RM100 million (US$23.75 million) to be raised by June 2026.

Investors have a minimum 24-month lock-in period for this close-ended fund – which can be extended by another 12 months with advance notice by fund manager Vcorp Capital Management.

Rex said this fund aims to provide at least 10% returns per year as consistent annual income distribution and capital protection through mirroring the returns generated from secured direct financing.

VCorp Capital has so far garnered over RM180 million (US$42.73 million) in AuM with its other four conventional funds.

Its first is the VCorp Corporate Growth Fund, launched in 2023 – investing in matured growth and IPO-ready companies. Launched in 2024, the Monarch Ventures Growth Fund focuses on AI and ESG-centric firms while the SEA Agriculture Ventures Fund is self-explanatory. The ADV Technology Fund was launched in May 2025.