Low-profile Ace Group, a diversified group with a strong focus on the financial services sector, is steadily making a mark for itself seizing opportunities in high-potential sectors at home and increasingly abroad.

The group has its roots in Ace Holdings Bhd, which was established in 1992 as an investment holding company, acquired a decade ago by Annie Chang, a dynamic young entrepreneur who cut her teeth in the financial services industry.

Today, Ace Holdings is the parent company of over 10 firms that are involved in a wide range of businesses with a combined paid-up capital of over RM600 million. Collectively, they are known as Ace Group.

“From banking and finance, capital management, property development, information technology (IT),  media and technology as well as cybersecurity, to movies and entertainment, our focus on building long-term relationships, combined with carefully crafted and curated products, services and solutions, makes Ace Group living proof that diversity is truly strength,” says group chairman Tan Sri Ahmad Fuzi Abdul Razak, formerly the secretary-general of the Ministry of Foreign Affairs.

“We have been, and always will be, on the lookout for high-potential sectors, organisations, individuals and ideas to fund and grow.”

Ace Group is backed by credible shareholders that come with a wealth of experience. They include Annie Chang, who is also group managing director, Ahmad Fuzi and Calvin Choong (group executive director). Tan Sri Ting Chew Peh, the former minister of housing and local government, is the group’s adviser.

Ahmad Fuzi, who holds directorships in several Malaysian companies, including Puncak Niaga Holdings Bhd, is notably the secretary-general of the World Islamic Economic Forum Foundation and chairman of public-listed Syarikat Takaful Malaysia Bhd.

Last year, Ace Holdings registered a net profit of about RM5 million, which is admirable considering the difficult operating environment Malaysian companies faced, with rising costs, volatile markets and a weak ringgit.

The group is based in KL Eco City in Kuala Lumpur.

The growth journey

Ahmad Fuzi, in recounting Ace Group’s journey into the financial services sector, says the first major business the group ventured into after setting up Ace Holdings was the leasing business in 2002 via Ace Worldwide Leasing Sdn Bhd.

Licensed by Bank Negara Malaysia, Ace Worldwide Leasing provides financing solutions for business assets ranging from buildings, manufacturing plants and commercial vehicles to furniture, IT equipment and office automation.

In 2003, the group set up Ace Credit (M) Sdn Bhd, a fully integrated financial service provider dedicated to providing products that include mezzanine lending, private placements, project financing and commercial loans. Ace Credit is licensed by the government and the Ministry of Urban Wellbeing, Housing and Local Government.

To this day, it continues to be the business that generates a major portion of Ace Group’s earnings.

Then, came Ace Capital Management Sdn Bhd, a venture capital management company licensed by the Securities Commission Malaysia. Its objective is to seek and develop a diversified portfolio of investment in late-stage start-up companies with huge growth potential, as well as in companies with proven track record that could add further value.

In 2010, the group got into private equity, through Ace Private Equity Sdn Bhd. The company invests in start-up technology ventures and prospective growing companies, and acquires innovative companies. Ace Private Equity not only provides funding but also strives to make the companies it invests in stronger by enabling new initiative launches, embarking on transformative acquisitions and upgrading technologies to unlock their potential.

Then, in October 2016, Ace Group obtained approval from the Labuan Financial Services Authority (LFSA) to set up Ace Investment Bank Ltd, marking a key milestone in the group’s development. It was officially granted the licence to operate early last year.

“The investment banking licence from LFSA enables Ace Group to expand its network and reach on the global front. This certainly complements our local reach in the credit market through Ace Credit. Moving forward, we will certainly be looking to expand our investment banking arm while continuing to grow our core businesses in the areas of investment management, capital management, credit and leasing,” Ahmad Fuzi says.

The licence allows Ace Investment Bank to, among others, extend credit facilities, provide consultancy and advisory services in relation to corporate and investment matters and undertake foreign exchange transactions.

“We are a Labuan investment bank, hence, we are allowed to deal in any currency other than the ringgit. The only thing we are not allowed to do is collect deposits,” Ahmad Fuzi explains. He says 2018 will be a particularly exciting year for the new kid on the block as it looks to create greater awareness of its existence to potential clients.

Ace Investment Bank is currently working to raise US$500 million under its Ace Asia Income Fund.  Of this, 55% of the fund will be for Islamic credit and leasing, with the remaining 45% going towards Islamic capital markets.

The investment bank will also be going on road shows in Singapore, Hong Kong, Shanghai and Dubai to promote its services and Labuan as a preferred destination for global investors.

Ahmad Fuzi says the bank is in the midst of finalising a mandate to act as adviser for a local corporation to raise RM5 billion in Islamic redeemable preference shares.

He believes that buoyant equity markets will bode well for the group and its clients.

“We expect the global equity market in 2018 to remain positive as we are confident that the global economy will continue to grow, led by China and the US. As for the local equity market, we expect it to continue its performance, post-general election, as we predict there will be an influx of foreign direct investments, which will spur growth in the Malaysian economy. Overall, we expect equities to be highly favourable over fixed income,” he says.

The investment bank is run and managed by CEO Tee Ting Cham, who has over 30 years of experience in the industry, having served in various senior positions at Bank Utama (now defunct), RHB Bank and Hong Leong Bank.

Apart from financial services, Ace Group is also active in other businesses. In 2005, it set up Ace Worldwide Industry Sdn Bhd to be a specialist in manufacturing premium health products and developing proprietary-based health ingredients while tapping superior health technologies. The company’s products are exported to China, Hong Kong, Japan and Dubai.

In the same year, it introduced Ace Corporation (M) Sdn Bhd, a construction and property development company. One of the company’s ongoing projects is a mixed-use development in Raub, Pahang, which has a gross development value of over RM300 million.

The group also has a digital media network company — Ace Media Network Sdn Bhd — which provides end-to-end marketing technology solutions.

Noticing a rise in cyber security issues in recent years, the group set up Ace Accelerator Network Sdn Bhd, which is Ace Group’s partnership with cyber security experts from around the world to identify undiscovered cyber security talent and entrepreneurs.

Interestingly, the group has also ventured into the media and film production space. A digital content producer, Ace Pictures Entertainment Sdn Bhd finances, produces, acquires and distributes intellectual property rights of films.

This is a business that is not just confined to the local market as it also has a presence in the US through California-based Ace Pictures Entertainment LLC. “We currently have four movies that are under production, all to be based in the US,” says Ahmad Fuzi.

With more than 10 businesses in all, the group is truly diversified. “The various industries and markets that Ace Group is involved in is a testament of our core belief in harnessing the power of diversity,” he says.

In recent years and in another notable milestone, the group has become a substantial shareholder of several public-listed companies — AE Multi Holdings Bhd, ConnectCounty Holdings Bhd, TechnoDex Bhd, O&C Resources Bhd and Apex Equity Holdings Bhd.

Additionally, it has secured a mandate from a local manufacturing company to raise US$125 million for its expansion and working capital.

The next step

Ahmad Fuzi believes the group’s wide range of markets and businesses as well as its team of experienced professionals have helped it gain key insights and up-to-date intelligence, enabling it to generate good returns for its shareholders.

So, what’s next for the group?

In the future, we will be looking to grow and transform the group into a reputable financial group in the region, building on our team of vastly experienced leaders,” he says.

“We will also be looking for opportunities from the emergence of the Fourth Industrial Revolution or Industry 4.0, particularly in the fields of cyber security, artificial intelligence, fintech, big data and blockchain technology.”

One thing is for sure — Ace Group has proved its mettle over the test of time. “We’re here to stay … we’re here for the long haul,” Ahmad Fuzi says resolutely.