Malaysia’s independent investment bank, Kenanga Investment Bank Berhad (Kenanga Group) announced Monday that it has acquired 8 percent stake in Singaporean fintech firm Helicap Pte Ltd.

Kenanga Group said in a statement that it has partnered with Helicap in a move to further advance its digitalization initiatives.

As part of this partnership, Kenanga Group, through a fund managed by its asset and wealth management arm, Kenanga Investors Berhad, has collectively taken a stake of 8 percent in Helicap.

The investment forms Helicap’s Series B funding round, which sees Kenanga Group as lead investor alongside Saison Capital Pte Ltd, the corporate venture capital arm of Credit Saison, one of Japan’s largest non-bank financial companies that is listed on the Tokyo Stock Exchange.

Subsequently, Kenanga Group’s stake will be further increased in the near future to approximately 10 percent, making Kenanga Group the largest institutional investor in Helicap.

Helicap, a fintech private investment platform that specializing in the alternative lending space in Southeast Asia (SEA), has built its success on a foundation of innovation and technology.

Central to its competitive edge is its proprietary credit analytics engine, which stands as the company’s strongest asset.

According to Kenanga Group’s Managing Director Chay Wai Leong, the group distinguishes itself from its peers by leveraging digital technology to elevate its service and solution offerings.

“By focusing on digital innovation, we have provided multiple touchpoints to enable our clients to engage with our services more efficiently and effectively,

“Therefore, our investment into Helicap is a natural progression in our digitalization journey, as Helicap’s proprietary technology can potentially be embedded into Kenanga’s own lending and investment banking business seamlessly to provide greater loan book transparency and analysis, portfolio and credit risk monitoring and granular-level data to identify nascent opportunities and obtain microeconomic insights,” he added.

According to the statement, this Investment builds upon Kenanga Group’s broader digitalization initiatives, following its successful investments into Rakuten, CapBay, Tokenize Malaysia and Merchantrade.

These partnerships reflect the group’s commitment to collaborating with best-of-breed fintech companies that are pioneers in their fields.

By deploying first-in-class digital technologies, it aims to continue to enhance its business activities, access new markets, and explore new segments.

The Investment follows the launch of Kenanga Investors’ latest product suite, the Kenanga Alternative Series, which was marked by the introduction of the Kenanga Alternative Series: Income Opportunities Fund in July 2024.

It feeds into the Helicap Income Opportunities Fund, an open-ended Asian private credit fund.

Kenanga Investors’ Executive Director and Chief Executive Officer Ismitz Matthew De Alwis said their enhanced partnership with Helicap will enable them to tap into its global network as a source of offshore capital as well as to facilitate deal co-origination and syndication efforts in both Singapore and Malaysia.

“Ultimately, we believe this will provide a strategic base for Kenanga Group to build further cross-border collaborative partnerships and capitalize on the dynamic growth in the region, as well as the rising income and affluence among South-East Asian investors,” he added.

According to the statement, from the fintech firm’s perspective, such a collaboration would seamlessly integrate Helicap’s strengths in private credit with Kenanga Group’s brand recognition and operational capabilities, creating a state-of-the-art private credit business.

“We are thrilled to announce our partnership with Kenanga Group, a pivotal step in bringing Helicap’s investment opportunities to the Malaysian market,

“This collaboration represents a significant milestone as we unite Kenanga’s robust local market presence and billions in assets with an extensive client base with Helicap’s powerful, sector-agnostic, data-driven platform and proprietary analytics technology,” said David Z Wang, Co-founder and Chief Executive Officer of Helicap Securities.

“As a leader in Asia’s private credit space, Helicap is poised to drive meaningful growth in Malaysia,

“Our commitment to financial inclusion and innovative investment solutions remains unwavering, as we continue to address the dynamic needs of investors and lenders alike,” he added.

Since its establishment in 2018, Helicap, through its regulated subsidiaries, has deployed almost S$500 million ($383 million), offering investment opportunities in Southeast Asia to accredited and institutional investors.

As a platform operator in Southeast Asia, it has strategically focused its investments primarily on financial companies, leveraging its unique credit screening system and enhanced loan structure to deliver stable and consistent returns.

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