October, 5 2020
Stride has formed an SPV with Trinity Alps Capital to invest in a Malaysian discount retailer that offers convenience at a low price point with a home improvement tilt. The founder of Trinity Alps, Raj Venkatesan, has been investing in global markets for thirty years with a longtime focus on Southeast Asia.
Like many emerging market countries, Malaysia has favorable demographics, a population with growing discretionary income, and an economy that is maturing but still lacks established consumer businesses that offer convenience and scale. The founders opened their first store in 2005 and have since grown to more than 600 locations in Malaysia, with plans to reach 1,000 over the next several years.
Stride likes the role this position can play in a portfolio as it offers high growth at a reasonable price without reliance on technology and offers diversification away from the U.S. and other developed countries that have highly valued equity markets and new sovereign risks from the pandemic.