The wholly-owned asset management subsidiary of RHB Investment Bank said the scheme seeks to offer long term capital appreciation by investing in the US dollar-denominated shares of Cayman Island incorporated RHB-OSK Pre-IPO & Special Situation Fund which was launched in Singapore in April this year.
Structured as a close-ended fund with a five-year term, RHB-OSK Pre-IPO & Special Situation Fund 2 will invest at least 95% of its assets in the Singapore-managed fund, deploying the rest in liquid assets.
Mike Chan, managing director and chief executive of RHB Investment Bank said the underlying fund has an investment strategy that combines growth capital or pre-IPO and special situations investment with hybrid debt or equity features.
The asset manager called the fund “innovative in nature” as it is a private equity fund with a unit trust structure.
Furthermore, the fund house said it was encouraged to launch this new fund on the back of its experience with a previous similar “unitized” private equity fund RHB-OSK Pre-IPO Fund floated in 2011.
“This has resulted and influenced the launch of the new fund that creates the opportunity for investors seeking alternative investment and a different type of asset class to include in their investment portfolios,” the company said.
The investment team from RHB OSK Asset Management Singapore, which manages the 2011 launched RHB- OSK Pre-IPO Fund, will also manage the newly launched feeder fund.
According to the fund house, the fund provides alternative investment for a “much broader market” of qualified investors encompassing high net-worth individuals and corporates.
The fund was offered for subscription on 22 July to qualified investors with a minimum investment of RM50,000 ($15,686.82, £9291.8) with each unit costing RM1.00 for a period of 45 days till 4 September.
The scheme levies a subscription fee of 5% and an annual management fee of 2.5% of the net assets.
The fund house in June floated a maiden Islamic balanced fund in Hong Kong and also a global bond fund in Malaysia.
