KBank Private Banking (KPB) holds the view that private equity is an interesting asset that can ensure stable returns for investors regardless of economic circumstances. As evidenced, K-GPE19A-UI and K-GTPE20A-UI – among private equities issued by foreign firms – have generated profit of 40 percent on average during the past two years. With the proven success of LH-THAIPE1UI – the first Thai private equity – the fund has thus far mobilized more than 3.67 billion Baht in funding. KPB will press ahead with the launch of alternative investment innovations while also contributing to Thai economic advancement.
Dr. Triphon Phumiwasana, Private Banking Business Head, Private Banking Group, said, “KBank Private Banking is determined to offer novel products to broaden investment vehicles and opportunities to ensure consistent satisfactory returns, especially via alternative assets for investors. Amid a highly volatile market environment, it becomes more difficult to gain attractive returns in stock markets. Under these circumstances, private equity has emerged as a popular asset that can help minimize portfolio volatility given that its prices do not swing with the market but are subject to fundamentals of relevant businesses. Holding of private equity will allow investors to be more resilient to various business cycles while also benefiting from growth of relevant companies before they are listed in the stock market. Therefore, investors stand to benefit from attractive and more stable returns over the long term.”
Over the past few years, KBank Private Banking has launched two private equity funds that invest in foreign private companies. These funds are K-GPE19A-UI, which invests in stable businesses with consistent cash flows and rapid growth, and K-GTPE20A-UI, which invests in technology-related enterprises with growth potential. In the past two years, K-GPE19A-UI and K-GTPE20A-UI generated returns of 43 percent and 3.8 percent, respectively.
In December 2021, KBank Private Banking teamed up with Land and Houses PCL in launching a new fund, LH-THAIPE1UI (LH Fund Thai Private Equity 1 Not for Retail Investors), to invest in eight to 12 small and medium-sized Thai companies with revenues in a range of 500-3,000 million Baht. These companies are those reporting profitability or that have experienced satisfactory profits, but are presently facing short-term problems, and are in industries that are expected to grow in line with the Thai economy in the long term. It is the first Thai private equity fund that was set up as an open-end fund and offered to investors. The Fund was overwhelmingly welcomed by High Net Worth Individual customers, as evidenced by total funds of 3,677 million Baht that had been raised in just 14 days after the offering date.
“The offering for sale of private equity funds in Thailand is one of KPB’s commitments in using our tools and investment expertise to bolster the competitiveness of Thai businesses and steering the Thai economy. Additionally, it allows KPB to share our knowledge on ways to build business growth for High Net Worth Individual clients, who are primarily business owners, while also reinforcing KPB’s status as a leading comprehensive wealth management service provider. In 2022, KPB is planning to continuously launch other alternative investment products. Aside from private equity funds, KPB will introduce liquid private equity funds, private debt and real estate private equity in Thailand, with the aim of diversifying risks, building satisfactory returns for clients’ investment porfolios, and striving to be a leader in the alternative investment market,” said Dr. Triphon.