Malaysian infrastructure fund to be managed by CFM and Argos Partners, adhering to shariah principles
The Malaysia Climate Infrastructure Fund (MCIF), a shariah-compliant private equity infrastructure fund, has been launched with a target size of $500 million (€429 million). The fund is co-managed by Climate Fund Managers (CFM) and Argos Partners, and is anchored by Malaysia’s largest public sector pension fund, KWAP, which has committed around RM500 million (€102 million) to the fund[1].
MCIF is mandated to invest primarily in infrastructure sectors across Malaysia, Asia, and Latin America, with at least 40% of capital allocated to Malaysian projects. The key sectors targeted by MCIF include renewable energy, transportation, digital infrastructure, water, and wastewater. The fund focuses on equity investments typically ranging from $15 million to $30 million, tailored to project size, sector, and development stage[1].
MCIF forms part of Malaysia’s broader Dana Pemacu initiative, launched by KWAP to mobilize RM6 billion of investments to boost Malaysia’s private market ecosystem through both conventional and shariah-compliant funds. Dana Pemacu emphasizes infrastructure, private equity, and real estate investments in sectors such as energy transition, digital economy, financial inclusion, food security, education, healthcare, and the silver economy[1][2].
The Dana Pemacu programme will be managed by CFM and Argos Partners as a joint venture domiciled in Malaysia. However, it does not appear that the Dana Pemacu initiative has a dedicated Shariah advisor, unlike MCIF[1].
MCIF aims to raise capital from other institutional investors, including pension funds, insurance companies, asset managers, and family offices. The fund does not specify the percentage of capital to be allocated to Malaysian opportunities beyond the 40% minimum[1].
The Dana Pemacu initiative and MCIF are part of Malaysia's broader efforts to drive sustainable economic, environmental, and social growth. The initiatives focus on enhancing domestic capacity, accelerating investment into critical sectors, and promoting private sector-led development[1][2].
[1] Malaysia Climate Infrastructure Fund (MCIF) Launched to Support Sustainable Growth. (2024, May 1). Retrieved from https://www.kwap.com.my/media-centre/news/malaysia-climate-infrastructure-fund-mcif-launched-to-support-sustainable-growth
[2] Dana Pemacu Initiative Unveiled to Boost Private Market Ecosystem. (2024, May 1). Retrieved from https://www.kwap.com.my/media-centre/news/dana-pemacu-initiative-unveiled-to-boost-private-market-ecosystem
- The Malaysia Climate Infrastructure Fund (MCIF) aims to invest in social impact areas such as energy transition, digital economy, financial inclusion, and even sports, being part of Malaysia's broader efforts to drive sustainable economic, environmental, and social growth.
- The Dana Pemacu initiative, beyond its focus on infrastructure, private equity, and real estate, also targets sectors like energy transition, financial inclusion, and the silver economy, aiming to promote private sector-led development and enhance domestic capacity in these areas.
- In its investment strategies, MCIF, which is part of the Dana Pemacu initiative, is planning to raise capital from various institutional investors, including asset managers and family offices, with a potential focus on the weather-resilient infrastructure sector in alignment with its emphasis on sustainable development.
