Castleforge, Foster Capital Sdn Bhd Launch £100M Catenary Capital Under KWAP's Dana Pemacu Initiative
KUALA LUMPUR / LONDON — Castleforge has partnered with Foster Capital Sdn Bhd to establish Catenary Capital Sdn Bhd, a Malaysia-based private equity real estate manager seeded by a MYR 500 million (£100 million) separate managed account from Kumpulan Wang Persaraan (Diperbadankan), the Malaysian civil service pension fund. The vehicle was formed under KWAP's Dana Pemacu initiative, a government-linked programme designed to catalyse private market investment and build domestic investment capabilities.
Deal Structure and Capital Mandate
Catenary Capital is registered with the Securities Commission Malaysia and has been created to manage and invest institutional capital into selected real estate sectors. Its initial separate managed account with Kumpulan Wang Persaraan (Diperbadankan) carries a mandate to invest in Sharia-compliant real estate opportunities in Malaysia and internationally. Castleforge participates as global co-general partner, providing strategic oversight and investment platform experience, while Foster Capital Sdn Bhd serves as the local Malaysian partner.
The Dana Pemacu programme allocates RM6 billion to private capital separate managed accounts across private equity, infrastructure, and real estate, with at least 50 percent Shariah-compliant. KWAP has named Castleforge alongside Lendlease Investment Management, Savills Investment Management, and TrustCapital Advisors as general partners under the real estate component of the programme.
Catenary Capital has already moved to deploy capital, signing a RM600 million deal to develop four foreign worker quarters totaling 28,800 beds near Kuala Lumpur, an early indication of the vehicle's focus on workforce accommodation infrastructure.
Strategic Rationale: Islamic Finance and Institutional Private Markets
The launch comes as Malaysia's government has explicitly linked Shariah-compliant investment strategies to national economic priorities under its Ekonomi MADANI framework. KWAP's Dana Pemacu programme pairs local talent with international investment managers through separately managed accounts, with the stated aim of raising governance and operational standards in segments where institutional participation has historically been limited.
Michael Kovacs, Founding Partner of Castleforge, said the firm sees a dual opportunity in the arrangement. "Malaysia presents a compelling long-term opportunity, both for inward investment and outbound capital flow into European real estate markets. The Dana Pemacu initiative reflects a serious commitment to further develop our relationships with institutional investors in the region," he said. "Our role as global co-GP is to bring the investment framework and operational discipline we have developed over 15 years in the UK and Europe, applying the same value-add approach that has underpinned our portfolio to a new and dynamic market."
Hizzan Hamid, Founding Partner of Foster Capital, described Malaysia's real estate market as being at an inflection point. "There is growing appetite from institutional capital, and a clear need for investment platforms that combine local market knowledge with global governance standards. Our partnership with Castleforge through Catenary Capital brings both, and positions us to build something genuinely differentiated," he said.
Castleforge's Central London Office Pipeline
The Catenary Capital launch follows a period of activity for Castleforge in its core UK market. The firm is currently delivering more than one million square feet of Grade A office space across the City of London, including its flagship redevelopment at 75 London Wall and One Golden Lane.
One Golden Lane, rebranded as UNO, is located between the Barbican and Golden Lane estates in the City of London. The refurbished building retains its original façade while adding 12 storeys and approximately 7,000 square feet of terraces and roof gardens, yielding roughly 120,000 square feet of Grade A office space upon completion. Main contractor Midgard, part of the JRL Group, is carrying out the work at a construction cost of approximately £60 million. Cheyne Capital and Apollo provided a £115 million facility for the redevelopment. Completion is targeted for Q2 2026.
75 London Wall is being developed in partnership with Gamuda Land UK Limited and represents another major component of Castleforge's City of London pipeline, which also includes 55 Mark Lane and Cannon Bridge House.
In September 2025, Castleforge secured an initial £150 million commitment from Conversant Capital for Castleforge Partners V, its Central London office strategy.
Market Context
The formation of Catenary Capital reflects a broader trend among large Asian pension funds seeking structured access to private real estate through partnerships with established international managers. For Castleforge, the arrangement extends its value-add investment approach into a new geography while channeling Malaysian institutional capital toward European real estate markets where the firm has an established operating platform.
Catenary Capital's Sharia-compliant mandate positions the vehicle within Malaysia's expanding Islamic finance ecosystem, which the government has tied to strategic economic development goals. The Dana Pemacu structure — pairing global co-GPs with local partners through separately managed accounts — is designed to transfer institutional investment expertise and governance practices into Malaysia's private markets over time.