Venture capital in Malaysia
Limited Partners (LPs) are the external, passive investors who supply the financial capital for a venture capital fund but do not participate in its daily management or investment decisions. In Malaysia, LPs are typically institutional giants like sovereign wealth funds, pension funds, corporate conglomerates, or high-net-worth individuals who commit large pools of capital to diversify their investment portfolios. Because their role is strictly financial, they enjoy limited liability, meaning their financial risk is legally capped at the exact amount of money they committed to the fund, and they are rewarded by receiving the lion’s share—typically 80%—of the fund’s investment profits upon successful startup exits.