Thailand-based private equity firm Lakeshore Capital is in the market to raise $125 million for its second fund, Lakeshore Capital II LP.
The new growth capital fund will primarily back companies in Thailand, with the potential to invest up to 20 per cent of its corpus in Cambodia, Myanmar, Vietnam and Laos.
Details of the fund were revealed by the International Finance Corporation (IFC) in a disclosure. The development finance institution is considering a proposal to make an equity investment of up to $20 million in the fund, not to exceed 20 per cent of its total corpus.
“IFC will provide long-term equity capital as an anchor investor to help the fund reach its first close and eventually its target size of $125 million in a difficult fundraising environment,” it said in the disclosure.
Lakeshore Capital II will make investments of $5-20 million to acquire significant minority and majority stakes, IFC noted. The global development institution was also the anchor investor in the fund’s predecessor, the $60.7 million Lakeshore Capital I that was closed in 2015.
Lakeshore Capital, founded in 2009, invests across a spectrum of sectors, including food, retail, consumer products, light manufacturing, healthcare, education, logistics and business outsourcing.
It is led by its four partners, Panaikorn Chartikavanij, Anotai Adulbhan, Supawat Likittanawong and Leonard Cohen. Bangkok Bank and the Development Bank of Japan hold minority stakes in the PE firm.
The investment firm recently offloaded its entire stake in local steakhouse chain Santa Fe to Singha Corporation for $50 million, generating a 2.75x return. Last year, Lakeshore Capital announced the acquisition of a controlling stake in analgesic product maker Devakam Apothecary Hall in a deal that marked its sixth investment.
Another major PE fund focused on Thailand is Morgan Stanley Private Equity Asia’s North Haven Thai Private Equity, which was closed last year after securing over $440 million in capital commitments. The fund, which was launched in partnership with Bangkok Bank, will focus on investments in companies with significant operations in Thailand.