KUALA LUMPUR: According to Ekuiti Nasional Bhd (Ekuinas)CEO Syed Yasir Arafat Syed Abd Kadir, the company foresees that the private equity market to remain subdued next year, due to lofty valuation expectations of entrepreneurs.
“This year, everybody is taking a very cautious view, in light of expanding multiples,” he told the media at the launch of The Malaysian Private Equity Forum 2019.
The overvaluation trend is likely to continue into next year, Syed Yasir said.
He also stressed that earlier this year, there has been a number of deals in the private equity market that he considered expensive. “Unfortunately, this has set the tone for some of the deals we are working on, people are expecting too high of a valuation,” he said.
Since Sept 30, Ekuinas’ total fund under management stood at RM4.1 billion.
The fund divested its stake in Tranglo and MediExpress & PMCare last year, while it acquired Flexi Versa Group.
In March, it acquired a 40% equity stake in Exabytes Capital for RM44 million.
Ekuinas has invested into 23 companies since its establishment in 2009.
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