Malaysia gets first search fund focused on SME deals

Malaysia’s first search fund, Nusatu Capital, is one year into its mission to acquire and operate a small or medium-sized enterprise, its founder Nazrul Johari said. Backed by 17 local and international investors, the Kuala Lumpur-based fund raised a seven-figure ringgit sum in 2024 to launch its search. Johari, a corporate strategist, aims to acquire a “stagnating” business and lead it as CEO. Search funds - investment vehicles that acquire and run SMEs - are gaining ground in Asia, following North America’s lead. Singapore has seen two such funds since 2024, with others launched in China, Taiwan, and Vietnam. Nusatu’s investors include Ambit Partners, AIJ Global, and Singapore’s Lighthaven. The model appeals to MBA graduates seeking a path to leadership through acquisition, rather than startup ventures.