Maharlika eyes co-investments with other sovereign, private funds

THE Maharlika Investment Corp. (MIC) is looking at the possibility of partnering with other funds interested in investing in the Philippines, its top official said on Monday.  

“We envisage co-investing with sovereign wealth funds, and other private equity and institutional funds that are keen to invest in the Philippines,” MIC President and Chief Executive Officer Rafael Jose D. Consing, Jr. told the BusinessWorld in a Viber message. 

This, following the MIC’s membership in the International Forum of Sovereign Wealth Funds (IFSWF), which is an England-based group of sovereign wealth fund managers. It also sets governance standards for the operation of funds globally. 

Its membership in the group will allow the MIC to engage with more global investors and fund experts and “grants the Philippines access to a range of privileges, such as international recognition, networking, and peer learning opportunities,” the Department of Finance said in a press release last week.  

Other IFSWF members include the respective sovereign wealth funds of Singapore, Indonesia, Malaysia, United Arab Emirates, United States, France, Italy, China, Spain, and Australia, among others.

“As for our Associate Membership in the IFSWF, we are excited to collaborate with leading sovereign wealth funds worldwide, sharing knowledge and best practices to maximize our impact on the Filipino people and the global community,” Mr. Consing said on Monday. 

Last week, the MIC Board also approved the corporation’s founding principles and framework for its overall mission, governance structure and high-level investment approach until 2028. Under Republic Act No. 11954 that created the Maharlika Investment Fund, the creation of the framework is required before the MIC can proceed with its investments.  

Mr. Consing has said the MIC is looking to initially invest in energy security, resource development, healthcare, and digital connectivity. He said the MIC will announce its first investment before the end of the year. 

The corporation’s annual budget has yet to be finalized by the Department of Budget and Management. It is also in talks with the Governance Commission for Government-Owned and -Controlled Corporations and the Civil Service Commission on its organizational structure.

It is also looking to set up thematic sub-funds, or equity mutual funds that invest in equities tied to infrastructure, manufacturing, energy, and other sectors.  

The MIC earlier said it is seeking to raise $1 billion for energy projects, one of its priority investment areas. The $1 billion may be raised through private equity and limited partnerships with other countries’ sovereign wealth funds, Mr. Consing said. 

The MIC chief also earlier said that they are in talks with government agencies to support the development of three economic zones in Luzon and Mindanao. These include an industrial ecozone north of Luzon, a medium-sized agri-industrial ecozone south of Metro Manila, and another ecozone in Mindanao. — B.M.D. Cruz 

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