OSK Ventures International Berhad (OSKVI) and Affin Hwang Investment Bank Berhad have on Thursday announced the launch of Pothos Fund I via Pothos GP Sdn Bhd, marking the introduction of their first venture debt fund for investors.
The fund represents a milestone in the country’s investment landscape by providing sophisticated investors access to an alternative asset class that has traditionally been accessible only to large-scale institutional investors, OSKVI said in a statement.
With a three-year investment tenure, Pothos Fund I aims to address a funding gap in Southeast Asia’s rapidly evolving innovation ecosystem by providing a debt-equity hybrid financing to high-growth companies.
Through venture debt financing, the fund enables promising businesses to extend their operational runway, accelerate expansion plans and optimize their capital structures with a significantly reduced dilution to existing shareholder equity.
The partnership combines the complementary strengths of two established industry leaders OSK Ventures International contributes deep venture-investing experience, having successfully invested in, nurtured, and exited more than 50 high-growth technology and enterprise companies across Southeast Asia over the past two decades.
Meanwhile, Affin Hwang complements this with deep capital markets expertise, private markets structuring capabilities, fundraising and distribution strengths, as well as access to a broad network of institutional and sophisticated investors.
The launch comes at a time when Southeast Asia continues to experience robust economic growth, increasing digital adoption and expanding entrepreneurial activity.
As venture-backed companies mature and become increasingly focused on capital efficiency, founders and management teams are increasingly seeking less-dilutive financing alternatives beyond traditional bank lending and equity fundraising.
OSKVI said Pothos Fund I is designed to deliver attractive risk-adjusted returns for investors through a combination of contractual income streams, downside protection features and selective equity participation, while supporting the next generation of local and regional champions.
Unlike traditional venture capital funds that focus primarily on equity investments, it noted the fund adopts a structured venture debt strategy, targeting revenue-generating businesses with proven business models, strong management teams and predictable cash flows that are poised for regional expansion.
“Having worked with entrepreneurs across Southeast Asia for many years, we have seen firsthand how access to the right capital at the right time can make all the difference. As companies mature, their financing needs evolve, and venture debt provides a valuable option alongside traditional equity funding,
“Through Pothos Fund I, we are not just introducing a new investment product, we are helping to build a more complete funding ecosystem that supports innovation, encourages sustainable growth, and creates long-term value for both businesses and investors,” said Amelia Ong, Chief Executive Officer of OSK Ventures International.
As venture debt continues to gain traction globally as a complementary financing tool alongside venture capital, OSKVI said Pothos Fund I is expected to play an important role in strengthening Southeast Asia’s funding ecosystem and broadening the range of investment solutions available to sophisticated investors in Malaysia.
“The launch of Pothos Fund I reflects Affin Hwang’s commitment to expanding access to differentiated private market opportunities while strengthening our premium multi-product offerings for sophisticated investors,
“As the region’s innovation economy continues to evolve, venture debt is playing an increasingly important role in supporting high-growth companies with capital that supports expansion while minimizing equity dilution,” said Hanif Ghulam, Chief Executive Officer of Affin Hwang Investment Bank Berhad.
“Through our partnership with OSK Ventures International, we are combining complementary strengths and deep market expertise to deliver an institutional-quality investment solution that benefits investors while supporting the next generation of Southeast Asian growth champions,” he added.
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