Krungthai Bank in collaboration with the Stock Exchange of Thailand and National Science and Technology Development Agency (NSTDA) has set up an SMEs Private Equity Trust Fund worth 2.3-billion-baht ($65.6 million) to accelerate the growth of small and medium enterprises and startups.
Of the total, two billion baht will come from Krungthai Bank, 200 million baht from the stock exchange and the remaining 100 million baht from NSTDA.
The trust plans to invest in three groups – high growth startups, technology based SMEs and large-sized suppliers – that drive the country’s economic growth.
“We would like to make Thai companies healthier and helping them to grow and eventually raise funding from the stock market, in the future,” Kesara Manchusree, President of the Stock Exchange of Thailand, said.
Apart from the financing, the fund will also provide the chosen companies financial advisory services, investment consultancy and pre-listing management for those who plan to list on the stock market.
In addition, NSTDA will provide other incentives such as tax exemption for research and development-based or technology-based businesses.
Krungthai Asset Management and One Asset Management are the trust’s managers.