KBank Private Banking (KPB) has announced the progress of LH-THAIPE1UI, Thailand’s first-ever Thai private equity fund, which recently made investments in two mid-sized Thai companies with high potential: NARA Thai Cuisine, a leading Thai restaurant group, and DRJL Group, the owner of Thailand’s leading facial serum brand Dr. JiLL.
The expert teams from the master fund manager with experience in private equity products, Fullerton Fund Management, and the fund sub-advisor, Hatton Equity Partners, which has expertise in the Thai market, will implement strategies to drive growth, diversify revenue streams and enhance operational standards of the invested companies. The fund has a strong pipeline in various industries including health and wellness, education, and logistics businesses and expects to make additional investments by the end of this year, with the goal to maximize exit valuations within seven years.
Dr. Triphon Phumiwasana, Senior Managing Director, Private Banking Business Head, KASIKORNBANK (KBank), said, “Private equity funds are alternative investment products which have seen consistently higher demands in the global market. They offer investment opportunities in businesses with different cycles and enable investors to benefit from growth opportunities from said companies before they are listed in the public market. In Thailand,
KBank Private Banking has been offering this innovative solution to high-net-worth clients for the past few years and one example is the LH-THAIPE1UI fund we launched in late 2021. This is the first Thai private equity fund that invests solely in Thai companies not listed in the stock exchange, and have raised over 3 billion baht in investment. According to the latest update from the global partner and the master fund manager, Fullerton Fund Management, the fund has successfully closed investment deals with two companies which have high growth potentials in-line with long-term market trends and the Thai economy. We expect the country’s reopening will accelerate the performance of the portfolio and generate returns in accordance with our target.”
The launch of LH-THAIPE1UI marked the first time Thai private equities were being set up as a fund and offered to investors in Thailand. The fund currency is in Thai baht, which reduces exposure to foreign exchange risks. It also offers a shorter fund term than similar funds in other international markets. Target companies are Thai businesses with rapid development and growth potentials.
LH-THAIPE1UI has invested in two Thai companies as follows:
- NARA Thai Cuisine, a leading Thai restaurant group with a distinctive identity, was first established in 2003. Apart from Nara restaurants, the company has founded another nine restaurant brands with 40 branches worldwide, including Ang Morr, Inka, Co Limited, Apinara, Lady Nara, and Madame Mae. The business is well-positioned to take advantage of an improved pandemic situation and economic recovery after the country reopening.
- DRJL Group, is the owner of a leading facial serum brand, Dr. JiLL. Founded in 2011, it has become Thailand’s best-selling serum for many consecutive years, with an average of over 1 million bottles sold annually and 70% of the revenue coming from recurring customers. Due to its unique online marketing strategies, the company is likely to benefit from the booming e-commerce. Apart from Dr. JiLL serum, DRJL Group has expanded its product portfolio, which now includes Cielo Blue Light sunscreen, GlowX moisturizer and GlowX Fiber FIT supplement.
Discussing the fund’s growth strategies, Mark Yuen, Chief Business Development Officer, Fullerton Fund Management, lshared, “After the fund made investments in NARA Thai Cuisine and Dr. JiLL, we have been working with a team of experts in implementing growth strategies. These include diversifying revenue streams, expanding product segments, strengthening operations, optimizing costs and capital structures, and professionalizing the management team.”
By the end of 2022, the fund manager plans to make additional investments in businesses within the world’s mega trends, namely logistics, education, and health and wellness.
“Private equity funds serve as attractive investment options in the period of high volatility in the stock market. With valuations reflecting real fundamentals of the invested companies, this asset class can reduce portfolio volatility and increase long-term stability. KBank Private Banking will continue to offer innovative investment solutions to reinforce our ‘Perfect Wealth’ promise as well as strengthen the potentials of Thai businesses, enabling them to compete on the global stage,” concluded. Dr. Triphon.
