Malaysia’s healthcare sector had many locally founded companies with strong business foundations, but some still required access to institutional capital, governance and international networks to expand globally.
KUALA LUMPUR: Dubai-based strategic investment and capital firm ARCB Investment LLC (ARCB) has launched the Kanzun-ARCB Growth Fund to identify, invest in and help expand Malaysian healthcare companies into regional and international markets.
The fund was launched through a strategic partnership between ARCB, Kanzun Ventures Management Sdn Bhd (Kanzun) and Healthcare Triangle Inc (HCTI), following the signing of a memorandum of understanding (MoU) between the three parties.
The collaboration establishes an investment platform connecting Malaysian healthcare companies with capital resources and investors from the Middle East, while potentially providing access to the United States (US) capital markets.
Under the initiative, ARCB will lead capital formation through its network of family offices, institutional investors and strategic partners across the Middle East, Asia and international markets.
Kanzun will lead investment and transaction activities in Malaysia, including identifying opportunities, conducting due diligence and valuations, and developing the portfolio. HCTI will support technology transformation and the readiness of eligible companies to explore the US capital markets.
ARCB Group chief executive officer Dr Udesh Chaskar said the launch of the fund marked an important step in ARCB’s ASEAN expansion strategy after the firm established its Asia-Pacific presence in Kuala Lumpur in April.
He said Malaysia’s healthcare sector had many locally founded companies with strong business foundations, but some still required access to institutional capital, governance and international networks to expand globally.
“Our partnership with Kanzun and Healthcare Triangle allows us to build more than just a fund. Instead, it creates a corridor connecting Malaysian healthcare companies with capital from the Middle East and, subsequently, the US capital markets,” he said.
Meanwhile, Kanzun Ventures Management Sdn Bhd chief executive officer S. Loganathan said Malaysia had many healthcare entrepreneurs who had successfully built strong businesses, but some continued to operate on a relatively small scale from the perspective of international capital markets.
He said this created opportunities for promising companies to be strengthened through growth capital injections, improved governance, technology adoption and expansion into international markets.
The partnership also provides access to international capital networks through ARCB, as well as healthcare technology expertise and connections to the US market through HCTI, he added.
Healthcare Triangle Inc founder and chairman Dr V. Suresh said the company was working with ARCB and Kanzun to assess opportunities in Malaysia’s healthcare sector.
He said HCTI would support identified companies in technology transformation, while also assessing suitable strategic pathways for them to explore the US capital markets.
The Kanzun-ARCB Growth Fund will focus on opportunities in healthcare, aesthetics and wellness services; medical devices and healthcare product distribution; as well as health technology and artificial intelligence (AI)-based solutions.
Each proposed investment or acquisition will be subject to financial and legal due diligence, valuation, audits, relevant approvals and the execution of definitive transaction agreements.
Established in 2022, ARCB currently has an investment mandate covering 10 sectors, including energy, water, healthcare, education, agriculture, industry, tourism, sports, technology and commercial property.
The launch of the healthcare-focused fund also marks ARCB’s first platform in ASEAN, with the firm planning to introduce other sector-specific partnerships and investment platforms in the region based on the development of its investor pipeline.
Following the signing of the MoU, the three parties will continue assessing investment opportunities in Malaysia’s healthcare sector, while ARCB will connect these opportunities with its regional and international investor network.
