OSK Ventures International Bhd (KL:OSKVI) and Hartamodal Sdn Bhd have been selected as the two investment managers under SME Corp Malaysia's Dana Pemangkin Penskalaan PKS - Pelaburan programme, aimed at helping small and medium enterprises (SMEs) access alternative capital from venture capital (VC) firms. 

The two firms were selected from a pool of 21 companies that submitted applications to become SME Corp's strategic partners for the programme, according to SME Corp chief executive officer Rizal Nainy, who confirmed the selection to Wealth.

The total amount to be allocated has yet to be finalised and will be split equally between the two firms.

"We have already done the selection process and we have already appointed and been accepted by the two companies as well… This is based on their track record, as well as on the data that they have submitted to us,” he said.

“I was there during the pitching process as well, and they have shown a very good and convincing [case] in terms of how they can actually deliver the programme — because this is not just about [the programme] itself, but it's also about commitment coming from their side. 

“We have a scoring assessment, and they are the two best companies that actually [are] agreed upon by the panel.”

Dana Pemangkin Penskalaan PKS aims to strengthen access to financing based on alternative and private funding models to support the growth and scaling of MSMEs in selected industries through two main offerings: financing and investment.

Meanwhile, the Dana Pemangkin Penskalaan PKS - Pelaburan programme operates as a fund-matching mechanism with VC firms on a one-to-one ratio. Under the structure, SME Corp allocates capital to the appointed managers, who then invest in Malaysian SMEs, alongside their own matching funds. 

Rizal said the two firms are expected to receive an equal share, with the total amount still to be agreed. "The amount is subject to the final agreement because there are two, so we have to look into how we're going to split that fund for both. It should be equal," he said. 

He added that the programme is not a one-year exercise, but runs under the five-year 13th Malaysia Plan with annual allocations dependent on the government's yearly budget tabled each October.

To qualify as an investment manager under the programme, applicants had to meet five baseline criteria set out in SME Corp's RFP materials, based on the agency’s LinkedIn post around three months ago.

The criteria are: registration with the Securities Commission Malaysia under the Capital Markets and Services Act 2007 as a VC corporation/private equity corporation or VC management corporation/private equity management corporation; a minimum of 51% local equity; possession of the required matching funds; at least one director with a minimum of 10 years' experience; and freedom from any conflict of interest.

OSK Ventures is the VC arm of the OSK group, investing in technology and growth-stage companies across the region. Hartamodal, the VC arm of boutique asset management firm Tradeview Capital Sdn Bhd, is a Malaysian-based VC firm focused on early- and growth-stage investments.