Malaysia’s securities regulator has unveiled two initiatives to attract investments on equity crowdfunding platforms, including one aimed at deals led by private equity and venture capital firms through a profit-sharing scheme.
Securities Commission Malaysia (SC) will share 50% of the profits with these private equity and venture capital companies when they lead investee firms into an exit round, the regulator says in a statement on March 17.
These alternative firms typically exit their investments through initial public offerings or selling off to large companies.
The profit-sharing comes under the SC’s Malaysia Co-Investment Fund or MyCIF, a seven-year-old scheme where the regulator co-invests with private sector investors on equity crowdfunding platforms.
The SC’s second initiative is for co-investments with the private sectorin micro, small and medium enterprises in businesses that are mainly related to supporting an ageing population.
The regulator will co-invest on a one-to-two ratio with the private sector in firms that must have businesses in at least one of five focus areas: specialised healthcare services, disability support service, health technology and innovation, aged-care services, and childcare services.
The co-investments are also through the MyCIF.
Malaysia currently has 11 equity crowdfunding platforms.
