The Singapore arm of global asset management giant Schroders has teamed up with Bangkok-based Krungsri Asset Management to unveil a private equity fund.
The Krungsri Global Private Equity Fund (KFGPE-UI) has raised $14m (£10m, €12m) in an initial public offering, and will be available to ultra-high net worth (UHNW) investors in Thailand.
The fund will invest through the Schroder GAIA II Global Private Equity Fund, which serves as the master fund. The minimum required investment is THB1m (£22,540, $30,000, €26,730).
The fund is targeted at UHNW investors looking to achieve potentially higher returns and greater portfolio diversification by accessing global private equity markets, according to Schroders.
It focuses on small-mid cap non-listed companies in the United States and Europe as well as among Asian growth companies.
These enterprises are expected to have a better chance of being listed on stock exchanges or sold to other shareholders, potentially generating good returns in the long run.
ESG focus
“The pandemic has accelerated the evolution of private markets and we are seeing an increased focus on impact investments and democratisation of private assets,” said Lily Choh, chief executive of Schroders Singapore.
“Against the backdrop of higher inflation and uncertainty in global outlook, private equity as an asset class provides investors with access to specialised, alternative return streams in the longer term as they look to reduce their exposure to listed assets,” she added.
The master fund will focus on five sectors – healthcare, technology, digital consumer-related, business services and industrials, and will invest to obtain exposure to a range of private equity strategies including venture capital, growth capital, buyout and financing for special situations.
ESG considerations have also been factored into the investment process.
“Investment in leading private equities provides access to multiple industries across the world, improves risk diversification, and increases return potential of the portfolio,” said Supaporn Leenabanchong, managing director of Krungsri Asset Management.
Investing in the KFGPE-UI can also be an alternative for UHNW investors whose criteria meet the regulations of the Securities and Exchange Commission in Thailand to participate in private equity investment with institutional investors, according to Schroders.
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