Temasek’s Fullerton raises $100m for Thai private equity strategy

Asia-based Fullerton Fund Management Company, an investment firm, has closed its first fundraise at US$100 million for a Thai-focused private equity strategy via KBank Private Banking. Alongside the bank, Fullerton is partnering with Land and Houses Fund Management and Hatton Equity Partners.

Photo credit: Temasek

With plans to invest in eight to 12 mid-sized Thai companies, these portfolio firms will be managed to reach target valuations and profitability. Gradually, returns will be made through company sales or an IPO.

Fullerton’s Thai private equity strategy aims for 2x returns on multiple of invested capital and a 20% gross internal rate of return. Investors will be able to fund family-owned firms, conglomerate spin-offs, and Covid-resilient and recovery businesses.

The investment firm says that 75% of Thailand’s stock exchange is made up of family-owned companies, contributing to 80% of the country’s GDP. These companies have a combined value of US$880 billion, according to a PwC survey cited by Fullerton.

Currently, the seven-year strategy is in its late capital-raising phase. It will be targeting sectors such as education, healthcare, retail, manufacturing, financial services, and food.

See also: Behind the crypto project backed by Temasek, JP Morgan, DBS

Incorporated in 2003, Fullerton operates under Seviora, a multi-asset management group established by Temasek. It helps government entities, sovereign wealth funds, and private wealth and retail reach investment objectives.

Since 2017, Fullerton has grown its assets under management to US$39.5 billion. It has also deployed US$886 million since 2019.