Investment

INVESTMENT FOCUS

We invest primarily in profitable small and mid-market companies in any sector in Malaysia or within ASEAN with enterprise value ranging between RM15 mil to RM100 mil and would be open to consider either a minority or majority position. We invest from RM0.5 mil up to RM 5 mil in companies that exhibit(s) the potential to achieve liquidity events within 2- 5 years.

We aim to drive value accretion to our portfolio companies by providing deep sectoral knowledge, extensive investment experience and access to regional or global operating resources. The following are some of the key characteristics of our investment targets:

• Emerging high growth companies in Malaysia and/or in the region wishing to institutionalise their shareholders lists, considering expanding organically and/or to potentially tap into regional or  international business opportunities.
• Well managed high growth companies focused on development, manufacturing and marketing of technology products and services and are in a position to take advantage of the growth curve of Asian economies
• Companies that leverage on new technologies to execute their growth strategies
• Companies with unparalleled competitive advantage arising from change in ownership, deep management bench strength and/or riding on positive shifts in core business focus. This include management buy-outs and management buy-ins.
• Companies with under leveraged business franchises which have yet to be fully exploited to realise its full potential. This include companies with high quality assets, strong brand and customer franchises, proprietary technology/intellectual properties and distribution networks which have yet to be fully harnessed.
• Companies expecting to achieve higher value creation and exhibit clear potential to harvesting of its investment value within two to five years.

INVESTMENT CRITERIA

When assessing suitability of investee companies, NewGen targets those exhibiting the following characteristics:

• Experienced and results-oriented management with high integrity
• Profitable companies with proven track record
• Large and growing addressable market
• Sustainable competitive advantage with wide economic moat
• Product uniqueness, quality and/or development capability
• Strategic match of product, production environment and market potential
• Commitment to strong financial discipline and accountability as well as good corporate governance
• Reasonable entry price and terms
• Clear exit opportunities

PARTICIPATION IN MANAGEMENT

NewGen is generally represented on the board of directors of portfolio companies.

Board representation of NewGen will facilitate its contribution to strategic stewardship of the company,  ensuring that it stays focused on executing its strategic plans.  Financial oversight and strategic risk management are also value adding roles of NewGen board representatives. Notwithstanding that, strategic counsel on asset protection, including financial, physical, and intellectual properties will be accorded when needed.

Portfolio companies will also benefit from having direct access to the breath of financial, operational and commercial capabilities of NewGen's resources.

NewGen believes in backing strong management teams that act with prudence and diligence whom do not require close and active day to day supervision. As such, our team typically do not get engaged in the day-to-day management and operational aspects unless required.