Affin Banking Group ("Affin Group") has agreed to transfer its controlling stake in Affin Hwang Asset Management Berhad ("Affin Hwang AM") to CVC Capital Partners Asia Fund V. This transaction is expected to be completed in Q3 2022, subject to customary closing conditions, including regulatory approvals.
Since its inception in 2001, Affin Hwang AM has grown to become one of Malaysia's leading asset management firms with a diverse client base of public and private companies, institutions, pension funds, and individual investors. As at 31 December 2021, Affin Hwang AM as well as its wholly-owned Islamic fund management arm AIIMAN Asset Management, have a combined RM81 billion in assets under administration.
Datuk Wan Razly Abdullah, President and Group Chief Executive Officer of Affin Bank, said, "We are pleased to see the entry of CVC, a global private equity player, into a home-grown asset management house which is testament to the confidence in the growth prospects of the financial services sector and the Malaysian economy as a whole. With the continuation of the management of Affin Hwang AM helmed by Dato' Teng Chee Wai and the institutional shareholding presence of Nikko Asset Management ("Nikko AM"), we believe that the business of Affin Hwang AM will continue to perform well moving forward and are confident that CVC, Affin Hwang AM management and together with Nikko AM are committed to support Affin Hwang AM's growth, its superior long-term commitment to deliver value to clients and further develop its talented employees."
Dato' Teng Chee Wai, Managing Director of Affin Hwang AM, commented, "We are excited to work with CVC, together with our longstanding partner, Nikko AM, to chart the course for Affin Hwang AM's next phase of growth and to advance the development of the Malaysian capital markets. The entry of CVC, a leading global private equity and investment advisory firm comes at the right time as we continue to broaden our suite of product offerings to cater to the growing needs of our clients and partners. We remain deeply committed to helping our clients build their wealth, and we look forward to partnering with CVC and Nikko AM to drive our commitment to our valued clients."
Alvin Lim, Senior Managing Director at CVC, added, "This marks our sixth investment in Malaysia since 2007, bringing our total capital invested to over US$1 billion. We remain confident in the strong economic fundamentals of the country, and believe this investment is an important opportunity for us to contribute to the continued development of Malaysia's asset management industry and capital markets, as well as to grow Malaysia into the region's leading asset management hub. We are particularly excited to partner with Affin Hwang AM's talented management team, who has shown a track record of outperformance, and Nikko AM, who will remain as a strategic shareholder. We look forward to supporting the management team in expanding the investment and product capabilities and entering other ASEAN markets, by leveraging on our experiences and network across the region."
Eleanor Seet, President of Nikko Asset Management Asia Limited and Head of Asia-ex Japan of Nikko AM, opined, "Our commitment to the region and our clients in Malaysia remains steadfast. We are delighted to continue our long-term partnership with the AHAM management team and welcome CVC. We believe the synergy of the new partnership will continue to strengthen the growth trajectory of Affin Hwang AM and enhance our ability to deliver progressive solutions to valued clients."