PACRA Maintains Asset Manager Rating of Lakson Investments Limited | Positive Outlook

Lakson Investments Limited ("LIL" or the "AMC”) is a multi-service asset manager with unmatched expertise in private equity and venture capital, setting it apart from other industry players. Alongside a comprehensive slate of Collective Investment Schemes, the AMC has long provided advisory services to associated mandates. It has also obtained a VPS license and plans to launch its VPS offering in the coming months. The AMC’s association with the Lakson Group—a leading Pakistani conglomerate with diversified expertise in manufacturing, food, technology, and financial services—adds further strength and stability to its assigned rating. The AMC is characterized by a well-defined organizational structure, rigorous risk management practices, seasoned leadership, and a suite of innovative products. As part of its strategy, the AMC primarily focuses on large corporates and high-net-worth individuals, who account for around 80% of the total portfolio. While corporate clients represent long-term investors, contributing to a relatively high concentration level, this concentration is gradually easing as the customer base continues to expand. During FY25, the average AUMs under CIS stood at around average PKR 60 billion, while total AUMs across the entire portfolio—including CIS, SMA, PE, and VC—were reported at average ~PKR 188 billion. Wherein Separately Managed Accounts expanded to PKR 120 billion. However, the market share of the AMC under CIS stayed stable at around 2% during FY25. While under SMA, it stood at 16% at end Dec’24. The fund performance under the majority of the funds, including SMAs, remained above the benchmarks. Specialized Funds: The Private Equity and Venture Capital funds have demonstrated strong performance. The Private Equity Fund, focused on the healthcare sector, reported AUMs of PKR 4.5 billion as of FY25 and has now entered the exit phase. A successful exit would mark a significant achievement for the AMC. The Venture Capital Fund, which invests in early-stage tech startups, had a portfolio valued at PKR 3.3 billion and has committed to multiple ventures through shareholder and SAFE agreements. The investment processes are systematically designed to cater to the needs of institutional and high-net-worth clients, which has resulted in comparatively lower focus on the retail segment, keeping institutional clientele dominant. Looking ahead, in light of the rapidly evolving digital landscape, greater digital penetration and strengthening of the retail base will be encouraged to support the rating.
The rating remains dependent on the AMC’s capacity to expand market penetration, uphold strong fund performance, preserve a sound investment framework, and effectively manage investor concentration risks.

About the Entity
Lakson Investments Limited was incorporated as an unlisted public company in 2008. The AMC is a wholly owned subsidiary of the Lakson Group of Companies. Lakson Group was established in 1954 and is owned by the Lakhani family. It is among the leading business conglomerates in Pakistan with diverse interests spanning agribusiness, fast food, IT, financial services, media, manufacturing, packaging, and surgical instruments. The CEO, Mr. Babar Ali Lakhani, possesses research and portfolio management experience with domestic and international institutions.