KBank Private Banking launches LH-THAIPE1UI, Thailand’s first Thai private equity fund
KBank Private Banking introduces an investment product innovation for attractive potential returns in various market situations with the launch of LH-THAIPE1UI (LH Fund Thai Private Equity 1 Not for Retail Investors), Thailand’s first ever Thai private equity fund. The investment will focus on mid-sized companies with exposure to Thailand’s economic growth. The private bank is joining forces with Fullerton Fund Management and its partners with expertise in Thai private equity in sourcing high-potential businesses and driving value creation with the goal to maximise exit valuations within seven years.
Mr. Triphon Phumiwasana, Private Banking Business Head, Private Banking Group, Kasikornbank, said, “KBank Private Banking is committed to providing our customers with innovative products that expand their investment areas and contribute to consistent positive returns. Among them are opportunities to invest in alternative assets, such as private equity funds, and access to complex investment instruments through the form of funds. Against the current backdrop with volatile stock prices and lower potential returns from public markets, private equity emerges as attractive assets that can reduce portfolio risks and increase potential for long-term gains. KBank Private Banking previously offered two private equity funds that invest in international companies. Similar to the first fund that has generated approximately over 40% returns in the past two years, the second fund is expected to show stellar performance, as well.”
Today, KBank Private Banking partners with Land and House Asset Management in the launch of a new fund LH-THAIPE1UI, marking the first time Thai private equities are being set-up as a fund and offered to investors. The investment will be done through the master fund Fullerton Thai Private Equity (VCC) in Singapore, which seeks to invest in 8 to 12 mid-sized companies through various deal sourcing. Through efficient management of fund managers and their team, when these companies reach their target valuations, the fund would then secure investment exits through either a sale of the company or an IPO.
The fund’s criteria for sourcing target companies include revenue of 500 – 3,000 million baht, which indicates high-potential businesses. They must also enjoy profitability and must not be startups which have no profit record. Target sectors are those aligned with Thailand’s long-term economic growth: consumer retail, food industries, industrial/advanced manufacturing, education, technology and information, healthcare and medical services, financial and business services. Rather than focusing on startups or venture capital, investment in these companies will ensure that the fund will have less risk exposure.
Mr. Triphon added that, “As private equities are assets outside the public markets, the master fund manager plays a crucial role in selecting target companies and implementing them for the portfolio. The fund LH-THAIPE1UI benefits from the established experience of the private equity team at Fullerton Fund Management, as well as the local expertise of Hatton Equity Partners, the fund’s sub-advisor. The oustanding features of this fund include the investment period that is shorter than other funds of similar characteristics in other countries while the target companies are those in Thailand with high potential and rapid growth.”
Mr. Mark Yuen, Chief Business Development Officer, Fullerton Fund Management, stated, “With almost 20 years of experience in managing capital, Fullerton Fund Management has strong expertise in managing assets for a wide base of investors. Our private equity team has on average 13 years of experience, and a deep understanding of markets with strong risk management in place to ensure that we can deliver the best outcomes for our investors. Together with the fund’s sub-advisor, Hatton Equity Partners, we will drive value creation for companies through well-honed strategies to grow their businesses, improve their balance sheets and management quality for IPO opportunities .”
LH-THAIPE1UI is offered to high-net-worth customers only. The fund term is 7 years with 2 one-year extions. For more information, please contact your private banker or KBank Private Banking Contact Center 02-8888811
