Stallion deploys Rs. 400 m to acquire and re-launch ACAP; targets $ 100 m inflows into CSE equities

From left: ACAP Stockbrokers Directors Jayasankha Alahendra and Dr. Manil Fernando, Managing Director Malik Fernando, Chairman Stefan Abeyesinghe, and COO Ruwan Rodrigo – Pic by Upul Abayasekara

• Acquisition at nearly Rs.200 m; further Rs. 150–200 m injected to restore capital adequacy and compliance
• Total investment approaches Rs. 400 m after five-month restructuring
• Targets $ 100 m inflows over 24 months from Switzerland, Austria, Japan and Australia
• Strategy to channel capital into listed firms with dollar and euro earnings

Stallion-backed ACAP Stockbrokers has re-launched after deploying close to Rs. 400 m to acquire, recapitalise and restructure the brokerage, positioning the firm to intermediate foreign capital into Sri Lanka’s equity market.

The brokerage was acquired for about Rs. 200 m, with a further Rs. 150–200 m invested to address capital adequacy constraints, rebuild compliance frameworks and restore trading capacity. The deal was completed around five months ago but withheld from disclosure pending restructuring in a regulated environment. 

The re-launch follows a rebuild of research capability, documentation standards and internal processes, alongside the assembly of a new execution team. ACAP Stockbrokers Managing Director Malik Fernando said the firm prioritised rebuilding institutional depth before returning to market. “We took our time to study the business and build an experienced team with the relevant research capability,” he said. 

ACAP Stockbrokers Chairman Stefan Abeysinghe said the firm is targeting $ 100 m in inflows over the next 24 months, focusing on high-net-worth investors in Switzerland, Austria, Japan and Australia, where it has long-standing relationships and prior capital-raising experience.

“We have worked with investors in these markets for over 15 years and raised hundreds of millions into private equity. What we want to do now is direct that capital into listed equities in Sri Lanka,” he said. 

The strategy is to secure allocations of around $ 1 m per account and channel funds into a defined set of about 40 listed companies with foreign currency earnings. Abeysinghe said the relatively small size of the Colombo market, estimated at about Rs. 8.5 trillion, creates scope for incremental inflows to have a material impact on valuations. 

ACAP Stockbrokers Director Dr. Manil Fernando said the restructuring focused on bringing the firm in line with regulatory expectations and strengthening core capabilities. “We wanted the firm to be compliant and properly structured with the necessary research and documentation in place before re-launching under the new ownership,” he said. 

Stallion’s broader portfolio spans multiple sectors beyond property, including Dynamic AV Technologies Ltd., in audio-visual systems and a medical equipment arm linked to global medical equipment brand Arthrex through Ortho Lanka Ltd. The group has also invested in Serdaka Global Ltd., a bunkering venture partnered with a Singapore-based firm, operating out of the World Trade Centre and preparing to acquire its first barge. 

Abeysinghe says the next logical step is entering into portfolio management. The firm is in discussions with regulators on entering portfolio and wealth management, as it seeks to extend its offering beyond execution into advisory and asset management. However, he noted that it was not a near time priority.

Abeysinghe said the ACAP Stockbrokers investment case is tied to market depth and capital flows. “This is about bringing capital into Sri Lanka, with premium quality research, which also included bespoke research for clients with specific requirement, and building value as the equity market grows,” he said.