KUALA LUMPUR (May 29): Government-linked private equity firm Ekuiti Nasional Bhd (Ekuinas), with about RM4.9 billion invested in 47 companies, said its portfolio companies’ core earnings grew 3.3% in 2024, recovering from a 7% drop in 2023. This growth was mainly thanks to strong results of UNITAR Education Group, Medispec (M) Sdn Bhd, and Exabytes Capital Group.

Excluding Al-Ikhsan Sports, which faced headwinds due to inflation and weaker consumer demand, Ekuinas’ portfolio earnings before interest, tax, depreciation, and amortisation (Ebitda) would have surged by 16.8%, the firm said.

UNITAR’s merger with Cosmopoint Group was a major contributor, posting a 77% jump in Ebitda supported by higher international student enrolment and digital transformation initiatives. Medispec recorded a 48.7% earnings growth driven by expansion and diversification, while Exabytes saw a 30.9% increase amid rising demand for digital infrastructure and cloud services.

Ekuinas’ Direct Tranche II fund, which includes full ownership of Burger King Singapore and PrimaBaguz Sdn Bhd, delivered a 12% return with RM901.1 million in total realisation. Tranche III, which divested its 50.2% stake in Icon Offshore Bhd, posted a 1.6% return with RM743.4 million total realisation. Meanwhile, Tranche IV recorded a strong 38.9% return, supported by investments in Medispec and Symbiotica Specialty Ingredients.

Its outsourced programme tranches were underperforming overall, with one positive but low return of 3.8% (Tranche I) and one negative return of 6.9% (Tranche II).

In a statement on Thursday, Ekuinas said funds under management grew by 19% to RM5.0 billion, while operating costs stayed low and efficient at 1.1% of funds under management, showing good cost control.

Ekuinas said its big highlight in 2024 was selling its 50.2% stake in Icon for a profit after holding it for over 10 years. It also added two new investments: Symbiotica, a top pharmaceutical ingredient maker, and Mizou Holdings, a Bumiputera company that makes machinery for the palm oil industry.

In November 2024, the firm launched an RM800 million Private Credit Fund aimed at providing shariah-compliant financing solutions to underserved mid-market businesses, completing its first transaction in early 2025.

By the end of 2024, Ekuinas had created RM6.9 billion in Bumiputera equity, representing a 1.6 times return on capital invested, and RM8.8 billion in total shareholders’ value — double the capital invested. Bumiputera representation in management roles rose 28.4%, while employment increased by 13.2%.

Ekuinas’ corporate social responsibility platform, ILTIZAM, disbursed RM15.3 million in 2024 to support entrepreneurship, education, and community initiatives, benefiting over 17,000 individuals and enterprises nationwide.

Ekuinas chief executive officer Aliff Omar Mohamad Omar described 2024 as a transformational year, highlighting a strategic pivot towards healthcare, pharmaceuticals, and innovative sectors. Looking ahead to 2025, Ekuinas plans to continue targeted capital deployment, value creation, and flexible funding options to further promote sustainable Bumiputera wealth and economic participation.