CAL to buy 51% stake in Hong Kong-based fund manager

Capital Alliance Holdings PLC (CAL), the parent company of CAL Bangladesh, has signed an agreement through its wholly owned Singapore-based subsidiary, CAL Global Pte Ltd, to acquire a 51% stake in Asia Frontier Capital Ltd (AFC), a Hong Kong-based fund manager specialising in frontier equity markets.
The proposed acquisition is subject to regulatory approvals, including that of the Securities and Futures Commission of Hong Kong.
The deal, signed on Monday in Sri Lanka’s Colombo, will connect CAL’s operations in Sri Lanka, Bangladesh and Singapore with AFC’s established investment platform in Hong Kong and its teams in Vietnam, Uzbekistan and Iraq, according to a press release.
The partnership will expand CAL’s presence in frontier markets, strengthen its ability to channel international capital into these markets and provide investors with access to a wider range of investment opportunities.
Commenting on the deal, CAL Group CEO Kanishke Mannakkara said frontier markets offer significant growth potential but remain difficult for international investors to access.
He said the partnership would extend CAL’s presence into three additional frontier markets and Hong Kong, while creating opportunities for investors in its existing markets to access investment opportunities across frontier markets and beyond.
Thomas Hugger, founder and CEO of AFC, said the partnership would strengthen the fund manager’s operational platform while preserving its existing investment approach, team, processes and independence in decision-making.
He said CAL would bring research and data capabilities in markets where information is scarce, expertise in frontier fixed income and investor relationships across South Asia. Its backing as a listed group would also strengthen AFC’s compliance, technology and operational capabilities.
Established in 2000 and listed on the Colombo Stock Exchange, CAL provides investment banking, asset and wealth management, fixed income, stockbroking and research services. It manages assets worth more than US$1.2 billion across Sri Lanka and Bangladesh.