Private Equity Investment (PEI) gives investors access to a list of businesses looking for funding in exchange for their shares. The PEI company will pick the business that fits our investment criteria and have the potential to grow. We will then have a slice at the returns of a business.

Participating in Private Equity Investment means that you are part of a revolution of the investment sector. Private Equity Investment is relatively new in Malaysia and successful exits can take anywhere from 3 to 10 years. Having said that, it is the nature of Private Equity Investment that it attracts both high potential businesses as well as intrepid-and-willing-to-fund investors eager to diversify their investment portfolios. Returns on the business funded are therefore commonly larger than conventional investment instruments. Apart from monetary returns, investing in businesses through PEI has its charm compared to say, investing in a list of anonymous portfolios from a large-cap company or publicly traded companies. This is because the Company chooses which type of businesses or ideas to focus on and invest in which they may be in line with goal.

As in all investments, there are always risks involved. It is key that all stakeholders play a role in mitigating the risk factor(s), and that includes you as the investor, the entrepreneur, as well as the Private Equity Investment operator i.e. SARACORP RESOURCES BERHAD.

  • The investee companies SRB invest in companies, businesses and/or assets that comply with Shariah principles and meets any two of the following criteria:
    • Companies/businesses that have or are acquiring revenue-generating assets;
    • Companies that have or are acquiring existing profitable assets;
    • Companies/businesses/ assets that have strong cash-flow, with proven annual earnings.
    • Companies/businesses that have sufficient underlying assets to match the investment to be made by SRB such that, the net tangible asset or market value ascertained by qualified auditors is at least 50% more than the value of investment to be made by SRB into the companies/businesses, or
    • Companies/businesses/assets that have procured or are backed by profitable and sustainable contracts.

Ask questions, read all information given carefully, and seek independent financial advice before committing yourself to any investment.

While risk can never be eliminated, SRB aims to identify risks to investors and help to reduce risk where possible. We have embedded key risk management strategies within our screening process to mitigate the associated risks, such as fraud and ensure the listing of quality deals (distinct product/services, high potential returns, Syariah compliant and sustainable business model, experienced management team with good track record).

SRB undertakes and covenant with the Subscriber that it shall:

 

  • take out and maintain the necessary insurance policies (during the periods in which such policies are relevant) in relation to its business and notify the Subscriber of any material events which may give rise to any claim or right of action under the insurance policies; and

 

  • unless with written consent of the Subscriber, not do or suffer to be done any act, matter or thing whereby any insurance, as aforementioned, may be rendered void, voidable or incapable of being affected, maintained or renewed.

 

  • The coverage of the insurance policies shall subject to any final approval from the insurance company.

 

All businesses that intend to raise financing through SRB have to undergo a 2-level screening process.

Businesses MUST pass all level of screenings to be listed as one of SRB’s investee companies.

Investors have protections through company law and securities law. Investors also have additional and well-defined protection through a shareholder i-RCPS agreement.

A rule of thumb for all potential investors; investments made through Private Equity Investment should be in the effort to diversify one’s portfolio and to spread risks. Investors are highly advised to acquire as much information on the business they want to invest in order to derive an informed investment decision to carry on independent and individual due diligence.

Investing Guidelines & Eligibility

You can subscribe as an investor immediately upon the sign-up process directly through the Company or through our Relationship Managers. You will then need to provide us with your personal details for us to conduct a KYC (Know-Your-Customer) to verify your identity to ensure all investors are who they claim to be.

Everyone is eligible to invest. You will however be classified to different categories of investors according to your investing limits, as per the Securities Commission guidelines described above. However, SRB only focuses on:

  • Sophisticated Investor:High Net Worth Individual i.e. an individual with a total wealth or net personal assets exceeding RM 3 million or its equivalent in foreign currencies OR High Net Worth Entities (Companies/Corporations) i.e. corporation with total net assets exceeding RM 10 million or its equivalent in foreign currencies based on the last audited accounts.

As an investor, you are subject to the investment limits provided in clause 11.21 of the Guidelines on Regulation of Markets under Section 34 of the Capital Markets and Services Act 2007, there is no restrictions for Sophisticated Investors.

It is highly recommended that you diversify your investment portfolio across a spread of portfolio of investments and asset classes, to minimise your investment risks. Also, importantly, avoid investing any more than you are able to lose.

While risk can never be eliminated, SRB aims to identify risks to investors and help to reduce risk where possible. We have embedded key risk management strategies within our screening process to mitigate the associated risks, such as fraud and ensure the listing of quality deals (distinct product/services, high potential returns, Syariah compliant and sustainable business model, experienced management team with good track record).

SRB undertakes and covenant with the Subscriber that it shall:

 

  • take out and maintain the necessary insurance policies (during the periods in which such policies are relevant) in relation to its business and notify the Subscriber of any material events which may give rise to any claim or right of action under the insurance policies; and

 

  • unless with written consent of the Subscriber, not do or suffer to be done any act, matter or thing whereby any insurance, as aforementioned, may be rendered void, voidable or incapable of being affected, maintained or renewed.

 

  • The coverage of the insurance policies shall subject to any final approval from the insurance company.

 

All businesses that intend to raise financing through SRB have to undergo a 2-level screening process.

Businesses MUST pass all level of screenings to be listed as one of SRB’s investee companies.

Investors have protections through company law and securities law. Investors also have additional and well-defined protection through a shareholder i-RCPS agreement.

A rule of thumb for all potential investors; investments made through Private Equity Investment should be in the effort to diversify one’s portfolio and to spread risks. Investors are highly advised to acquire as much information on the business they want to invest in order to derive an informed investment decision to carry on independent and individual due diligence.

Understanding the Process

There are NO additional costs on the investor when you subscribe with SRB. All required government levies or taxes will be borne by the Company, when an investment is concluded. For example: stamp duty etc.

The minimum investment amount to invest in SRB is RM250 thousand. The minimum requirement set Securities Commission following the investment limits provided in clause 11.21 of the Guidelines on Regulation of Markets under Section 34 of the Capital Markets and Services Act 2007 by the listed businesses for funding.

If fund reaches its maximum target raised, and SRB wishes to increase the fund size, the Company must issue a supplementary information memorandum to the Securities Commission on the increased amount intended or notice prior to any invitation or offer on subscription of i-RCPS of more than RM250 million. The value of an investment made prior to overfunding will remain the same, as the post-money valuation will go up by the amount invested.

Completing an Investment

You can make payment via cheque, IBTF or telegraphic transfers. Contact us via email at info@saracorpresources.com for further information. A member of our team will then contact you directly to facilitate the payment.

You are allowed to forfeit from a committed investment within 5 business days (cooling-off period) starting from the date of payment. You can do so by emailing us at admin@saracorpresources.com Please state your full name, amount and the package of your subscription. A member of our team will then process this for you and send you a written confirmation of the cancellation.

SRB will provide a standard form of shareholders/investment agreement for use.

While risk can never be eliminated, SRB aims to identify risks to investors and help to reduce risk where possible. We have embedded key risk management strategies within our screening process to mitigate the associated risks, such as fraud and ensure the listing of quality deals (distinct product/services, high potential returns, Syariah compliant and sustainable business model, experienced management team with good track record).

SRB undertakes and covenant with the Subscriber that it shall:

 

  • take out and maintain the necessary insurance policies (during the periods in which such policies are relevant) in relation to its business and notify the Subscriber of any material events which may give rise to any claim or right of action under the insurance policies; and

 

  • unless with written consent of the Subscriber, not do or suffer to be done any act, matter or thing whereby any insurance, as aforementioned, may be rendered void, voidable or incapable of being affected, maintained or renewed.

 

  • The coverage of the insurance policies shall subject to any final approval from the insurance company.

 

All businesses that intend to raise financing through SRB have to undergo a 2-level screening process.

Businesses MUST pass all level of screenings to be listed as one of SRB’s investee companies.

Investors have protections through company law and securities law. Investors also have additional and well-defined protection through a shareholder i-RCPS agreement.

A rule of thumb for all potential investors; investments made through Private Equity Investment should be in the effort to diversify one’s portfolio and to spread risks. Investors are highly advised to acquire as much information on the business they want to invest in order to derive an informed investment decision to carry on independent and individual due diligence.