Exclusive: TPA to raise $100m for third vehicle

Thai Prosperity Advisory Company Limited (TPA), Thailand-based investment advisory firm, plans to raise its third fund in the second quarter of 2015 with a target of $100 million, a top executive with the company said.

TPA is currently in talks with limited partners for its third buyout vehicle that will be called Thailand Indochina Private Equity Fund (TIPF), its investment director Krit Phunratanamala told DEALSTREETASIA. The fund life will be for eight years, while the investment period is four years.

“We are looking for opportunities to invest in Thailand, Indochina and the ASEAN countries. We will focus both on the Thai companies looking to expand abroad as well as foreign firms that would like to use Thailand as their base to invest in the region,” he said.

TIPE will target investment in three main sectors – renewable energy, preventive medical hospitality and food retail. It plans to be a significant minority shareholder in the targeted firms, with a holding size of between 10 per cent to 45 per cent stake in each.

“All the three sectors are on upward trend. We are interested in small-to medium-sized bio gas and biomass power plants, which have potential to scale up,” he said. “The medical hospitality is booming especially preventive and traditional medicine, while many of the food retail operators have high potential to grow in the regional market,” he added

TPA was established in 2003 as a joint-venture between the Government Pension Fund of Thailand and the Brunei Investment Agency with the initiative to capitalise on the knowledge and expertise of both institutions.

Specialising in equity investments, TPA has advised on transactions including raising capital for growth expansion, financial restructuring, as well as, buyouts. So far, TPA has advised on the strategies and investments of two funds, which are Thailand Prosperity Fund (TTPF-1) and Thailand Prosperity Fund II (TTPF II).

The $200-million TTPF-1 was launched in March 2003 and finished the investment period in 2007. Currently, it is in the final stage of divestment period, expecting to finish and close the fund in 2015. Some of the companies, the fund had invested in and also exited include, Nok Air (in 2011), Sahathai Steel Pipes Plc (in 2013) and Quality Houses Plc (in 2008).

TTPF II, worth 2.53 billion baht (approximately $77 million, today) was launched in Sep 2008 and finished the investment period in 2012. However, it has two more years for exiting its investment. Some of divested companies were, Efficient English Services (a franchise operator of Wall Street English in 2014), Biodegradable Packaging for Environment (in 2014), and Diamond Building Products (2012-14).

In February, Thailand’s the Securities and Exchange Commission (SEC) Board approved the restructuring of private equity (PE) firms as trusts or “PE trust”. This move is to help increase fund raising channels for businesses and also enhancing the use of trust for transactions in the capital market.

Image: www.freedigitalphotos.net

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.