Malaysian infrastructure fund to be managed by CFM and Argos Partners, adhering to Islamic financial principles
The Malaysia Climate Infrastructure Fund (MCIF), a strategic initiative by KWAP under the Dana Pemacu programme, is set to drive sustainable economic growth by focusing on critical sectors for development and social impact.
The MCIF, with an investment range of $15m-$30m, aims to raise a total of $500m from other institutional investors. The fund primarily invests in infrastructure related to energy transition and climate-focused projects, aligning with sectors such as energy transition, food security, education, healthcare, the silver economy, digital economy, and financial inclusion.
Managed through a co-general partner model, the MCIF pairs global and local investment managers to strengthen Malaysia’s private market ecosystem while achieving sustainable and diversified returns. Funds are invested via Separately Managed Accounts (SMAs) that cover private equity, infrastructure, and real estate mandates.
The MCIF is mandated to invest in infrastructure opportunities across Malaysia, Asia, and Latin America, with at least 40% of capital allocated to Malaysian opportunities. Notably, the fund has appointed a dedicated Shariah advisor to ensure all investments comply with Islamic finance principles, making it a Shariah-compliant fund.
The MCIF is managed by Climate Fund Managers (CFM) and Argos Partners, and it invests in sectors such as renewable energy, transportation, digital infrastructure, water, and wastewater. The fund's investment director, Jeb Victorino, has stated that the MCIF is currently targeting investments in digital infrastructure and water that align with its development mandate and aim for environmental and social impact.
Malaysia's largest public sector pension fund, KWAP, has made an initial investment of €100m in the MCIF. The fund's Shariah-compliant status is intended to broaden its appeal to a diverse pool of institutional investors, including those with mandates or preferences for Islamic finance.
In a related development, SHIFT Invest announced a €92m first close of its impact fund, with a focus on biodiversity and EU funding. Although not directly related to the MCIF, this development underscores the growing global interest in sustainable and impact-oriented investments.
The Dana Pemacu programme, launched in May 2024, aims to enhance domestic capacity, accelerate investment into critical sectors, and drive sustainable economic, environmental, and social growth. The programme is focused on three main asset classes - private equity, infrastructure, and real estate.
The MCIF's structure and strong development and sustainability credentials are designed to appeal to both conventional and values-based investors, positioning it as a strategic vehicle for advancing Malaysia’s climate infrastructure goals within a broader private equity investment programme.
[1] The Edge Markets [2] DealStreetAsia [4] KWAP [5] CFM
- The Malaysia Climate Infrastructure Fund (MCIF) is driven by KWAP under the Dana Pemacu programme to foster sustainable economic growth and impact.
- The MCIF, with a potential to raise $500m, focuses on critical sectors like energy transition, digital economy, financial inclusion, education, healthcare, and others.
- The fund invests in infrastructure opportunities across Malaysia, Asia, and Latin America, with at least 40% allocated to Malaysian opportunities.
- MCIF's co-general partner model pairs global and local investment managers to strengthen Malaysia’s private market ecosystem while aiming for sustainable and diversified returns.
- The MCIF primarily invests in energy transition projects, renewable energy, transportation, digital infrastructure, water, and wastewater.
- The fund's initial investment of €100m comes from Malaysia's largest public sector pension fund, KWAP, broadening its appeal to Islamic finance-focused institutions.
- SHIFT Invest has recently closed a €92m impact fund, focusing on biodiversity and EU funding, reflecting the growing global interest in sustainable investments.
- The Dana Pemacu programme, launched by KWAP in May 2024, is focused on private equity, infrastructure, and real estate, increasing domestic capacity and accelerating investment.
- The MCIF's structure and emphasis on development and sustainability make it an attractive choice for both conventional and values-based investors.
- The MCIF is managed by Climate Fund Managers (CFM) and Argos Partners and will aim to contribute to Malaysia's climate infrastructure goals within a broader private equity investment programme.
- Media outlets such as The Edge Markets and DealStreetAsia have reported on the MCIF, indicating increasing public and sectoral awareness of sustainable investing and the role of finance in development, social impact, environmental-science, lifestyle, business, education-and-self-development, career-development, skills-training, data-and-cloud-computing, affordable housing, energy transition, and biodiversity conservation.