PACRA Upgrades the Asset Manager Rating of Lakson Investments Limited

Lakson Investments Limited (“LIL” or the “AMC”) is a multi-service asset management company with a diversified business model spanning Collective Investment Schemes (CIS), Separately Managed Accounts (SMA), and Private Equity (PE) & Venture Capital (VC). This diversified franchise provides LIL with a differentiated positioning within the asset management industry. The AMC benefits from its association with Lakson Group (the “Group”), a well-established business group with presence across FMCG, financial institutions, and technology. The Group’s established franchise and financial strength provide sponsor support and remain a positive factor in LIL’s overall profile. During FY22–FY25, LIL recorded notable growth across its business verticals, supported by strategic initiatives. CIS AUM increased to PKR 60bln, while market share remained broadly stable. The AMC’s focus on corporate and Group-related clientele provides a relatively stable AUM base and helps mitigate redemption pressure. In addition to its core fund offerings, LIL also maintains a differentiated product suite, including the Lakson Asset Allocation Developed Markets Fund, which provides exposure to international markets, and the Lakson Tactical Fund, which offers flexible exposure across asset classes, including equities and commodities. The fund performance remained broadly in line with peers during the period under review, with a slight lag observed in a few funds. SMA remains a key contributor to LIL’s business profile, with AUM peaking at PKR 122bln and averaging around PKR 83bln during the period under review. A dedicated team and specialized service model support portfolio management, client retention, and business development in this segment. LIL has demonstrated execution capability in PE, supported by a specialized team. PE fund size remained sustainable and generated an IRR of around 96%, while OMI Hospital’s topline increased by approximately 3x since acquisition and the entity was turned profitable. The successful execution has strengthened LIL’s track record in alternative investments and provides a basis for attracting investors to subsequent funds. On the VC side, LIL has built a well-diversified portfolio of companies while the fund size remains sustainable.
Going forward, LIL’s three-year strategy focuses on strengthening human resources through the induction of experienced professionals, diversifying the fund slate across income, equity, and asset allocation, with particular focus on Islamic products, launching VPS offerings to enhance retail penetration, and strengthening digital infrastructure. The digital roadmap envisages backend enhancements followed by front-end implementation to support broader retail outreach. Successful execution of these initiatives is expected to broaden the investor base, support profitability, and strengthen LIL’s competitive positioning. The business growth momentum sustained into FY26, with PAT reaching PKR 261mln in 9MFY26. The equity base further strengthened to PKR 2.4bln, supported by retained profitability, reflecting continued improvement in the Company’s financial profile.
The rating remains contingent upon the AMC’s ability to successfully execute its growth strategy, expand market penetration, sustain strong fund performance, strengthen its product and 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. The CEO, Mr. Babar Ali Lakhani, possesses research and portfolio management experience with domestic and international institutions.