The fund corpus is more than double the size of its debut vehicle, which secured $60 million in 2015. The firm’s second fund saw strong support from existing and new institutional investors, which include a mix of pension funds, fund of funds, family offices, and development finance firms.
Lakeshore Capital II was launched in November 2019 just before the global coronavirus outbreak. International Finance Corporation (IFC), a member of the World Bank Group, has committed up to $20 million to the fund. IFC was also the anchor investor in Fund I.
The new growth capital fund will primarily back companies in Thailand, with the potential to invest up to 20% of its corpus in Cambodia, Myanmar, Vietnam, and Laos. It will make investments of $5-20 million to acquire significant minority and majority stakes, according to IFC’s pre-investment disclosure in 2019.
“Thailand is the geographical focus area for investments but we also consider investment opportunities in the Greater Mekong Sub-region,” the PE firm said on its website.
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.
In 2019, the investment firm offloaded its entire stake in local steakhouse chain Santa Fe to Singha Corporation for $50 million, generating a 2.75x return. A year earlier, it announced the acquisition of a controlling stake in analgesic product maker Devakam Apothecary Hall in a deal that marked its sixth investment.
Despite the challenges posed by the COVID-19 pandemic, four SE Asia-focused PE funds managed to record a final close in 2020—three of these were closed in the second half of the year—with a total corpus of $1 billion, according to DealStreetAsia’s Private Equity in SE Asia: H2 2020 Review.