KBank Private Banking has announced progress on Thailand's first private equity fund (LH-THAIPE1UI), which has recently invested in two high-potential medium-sized companies: NARA Thai Cuisine, a leading Thai restaurant chain, and DRJL Group, the top skincare product brand in Thailand known for Dr.JiLL. This initiative is backed by prominent organizations, including Fullerton Fund Management, which has a team experienced in private equity, and Hatton Equity Partners, which specializes in the Thai market. The strategy aims to grow these companies, expand revenue streams, and enhance operational standards. The fund plans to invest further in various sectors by the end of this year, including health promotion, education, and logistics, with expectations of generating profits for investors within seven years as per the plan.

Dr. Tripol Poomvisana, Head of Private Banking Business at KBank, stated, "Private equity is a popular investment innovation in alternative assets globally, allowing investors to access businesses in diverse cycles and benefit from their growth before they go public. In Thailand, KBank Private Banking has continuously offered this investment innovation to high-net-worth clients. At the end of 2021, we launched the LH-THAIPE1UI fund, the first to invest in Thai companies outside the stock market, raising over 3 billion baht. The fund's performance has shown promising progress, with our global partner, Fullerton Fund Management, reporting successful deals in two growth-potential companies aligned with market trends and the long-term economic outlook of Thailand. We anticipate that the positive factors from reopening the country will drive continued growth for both companies and deliver returns to investors as targeted."

The key feature of the LH-THAIPE1UI fund is that it is the first private equity fund to invest in Thai companies, allowing transactions in Thai baht, which helps mitigate foreign exchange risks. It also has a shorter investment duration compared to similar investments abroad, focusing on target companies in Thailand with high development and growth potential.

The Thai private companies that the LH-THAIPE1UI fund has invested in include:

  • NARA Thai Cuisine, a leading Thai restaurant chain known for its distinctive identity, founded in 2003. Currently, in addition to the Nara restaurant, the company has expanded to over nine other brands, including Ang Morr, Inka, Co Limited, Apinara, Lady Nara, and Madame Mae, with over 40 branches worldwide. As the pandemic situation improves, the restaurant business is expected to benefit from growth following the reopening of the country.
  • DRJL Group, the leader in skincare products under the Dr.JiLL brand, established in 2011, has become the top-selling serum in Thailand for several consecutive years, with annual sales exceeding one million bottles and a 70% repurchase rate. With a unique online marketing strategy, it has high growth potential in the booming e-commerce era. In addition to the Dr. JiLL serum, the company has expanded its product line to include Cielo Blue Light sunscreen, GlowX facial moisturizer, and Glowx Fiber FIT dietary supplements.

Mr. Mark Yuan, Chief Business Development Officer at Fullerton Fund Management, revealed the strategic plans to drive growth for the fund, stating, "After acquiring shares in NARA Thai Cuisine and Dr.JiLL, we are seeking professionals to strategize business growth, such as increasing revenue streams, expanding product segments, enhancing operational standards, improving cost management efficiency, and strengthening personnel in each department."

In 2022, the fund manager plans to invest further in business sectors aligned with global megatrends, such as logistics, education, and health and wellness.

"Private equity funds are an alternative investment option in a highly volatile stock market, as their value is based on the actual fundamentals of the business, which helps reduce volatility and increase portfolio stability in the long term. KBank Private Banking will continue to present investment innovations to create sustainable wealth for clients and contribute to strengthening Thai businesses with competitive potential in the global market," Dr. Tripol concluded.

The LH-THAIPE1UI fund is exclusively for high-net-worth investors, with an investment duration of seven years and a maximum of two additional investment rounds, each lasting one year. For more information about our services, please contact your private banker or the KBank Private Banking Contact Center at 02-8888811.