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 Hong Kong-based fund manager Asia Frontier Capital Ltd. (AFC).
The proposed transaction remains subject to regulatory approvals, including clearance from the Securities and Futures Commission of Hong Kong.
The acquisition marks a major milestone in CAL's international expansion, linking its existing operations in Sri Lanka, Bangladesh, and Singapore with AFC’s investment platform in Hong Kong and its on-the-ground teams in Vietnam, Uzbekistan, and Iraq.
Founded in 2013 by Thomas Hugger, AFC manages approximately USD 125 million in assets under management (AUM) for investors across North America, Europe, and Asia.
Its portfolio features the multi-country AFC Asia Frontier Fund as well as dedicated funds for Vietnam, Iraq, and Uzbekistan.
AFC has also maintained a long-standing investment footprint in Sri Lankan and Bangladeshi equities.
Kanishke Mannakkara, group CEO of CAL, said the partnership establishes a vital conduit to connect international capital with high-growth frontier markets.
"Frontier markets offer some of the most compelling growth stories in the world, yet they remain hard for international investors to reach," Mannakkara said.
"This partnership changes that... Together with AFC, we will serve as a conduit for international capital to access frontier markets and, just as importantly, for investors in our markets to access opportunities across the frontier and beyond."
Following the acquisition, Thomas Hugger will remain as founder and CEO of AFC, ensuring continuity in the firm's investment process and team.
"Our investors will continue to benefit from the same approach to managing their money, with the same team, investment process and independence in our decisions," Hugger said.
"What changes is the strength of the platform behind us."
Established in 2000 and listed on the Colombo Stock Exchange, CAL manages over $1.2 billion in assets across Sri Lanka and Bangladesh.
In Bangladesh, CAL operates through CAL Securities Limited—a stockbroker ranking among the top 10% of market participants—and CAL Investments Limited, a merchant bank specializing in mergers and acquisitions advisory and wealth management.
Upon completion of the transaction, CAL and AFC intend to explore expanding AFC's product offerings to include frontier fixed income and country-specific strategies, pending regulatory approval.
