KUALA LUMPUR — Permodalan Nasional Bhd (PNB) has clarified that its investment in FashionValet Sdn Bhd was made using its proprietary fund and not the unit trust funds under Amanah Saham Nasional Bhd (ASNB) subscribed by the public.
“We regret the loss incurred which amounted to RM18.7 million after sale proceeds received of RM1.3 million, but they should be viewed relative to RM337 billion in investment assets managed by PNB and the RM16.4 billion in investment income generated after accounting for this loss in the financial year 2023,” it said in a statement.
PNB said FashionValet represented a genuine venture capital investment aimed at supporting a high-potential Bumiputera company, but its business was unfortunately severely affected by COVID-19 and changes in retail trends.
It also explained that PNB’s Proprietary Fund, in 2018, participated in FashionValet’s Series C fundraising through a redeemable convertible preference shares investment of US$5 million (RM20 million) for a small minority stake.
This investment was made after going through PNB’s private investment detailed evaluation and due diligence process, and undertaken at a fair market value reflecting FashionValet’s robust growth trajectory, PNB said.
It also projected revenue to increase by approximately 60 % annually over the preceding three years.
“PNB recognises the risks and rewards in investing in venture capital and private equity, and as such, these investments are managed as a portfolio, with performance assessed on the overall portfolio rather than specific investments.
“To manage risks, strict limits and guardrails are adopted to ensure that investments are not concentrated and primarily funded by PNB’s proprietary fund, protecting ASNB unit holders from potential losses,” it added.
PNB also said the investment in FashionValet had been made in line with the government’s call for government-linked investment companies at that time to support the growth of high potential Bumiputera companies operating in the new economy. – November 2, 2024