Krungsri joins hands with BlackRock to promote investment in private equity funds, enabling investors to have the opportunities to enhance returns and cope with stock market volatility
Krungsri (Bank of Ayudhya PCL and its business units) and BlackRock, one of the global leading asset management companies, encourage investors to create investment opportunities through private equity, place focus on taking part in the management of high growth companies in a diversified range of industries across the world and reduce the risks arising from market volatility, by investing in Krungsri Long Term Private Capital Fund – Not for Retail Investors (KFLTPC-UI), which is launching the IPO during 25 July-8 August 2022.
Mr. Win Phromphaet, CFA, Krungsri Executive Vice President, Head of High Net-Worth Division, said, “Amid the economic fluctuations caused by the rising interest rate policy aimed at stemming inflation pressure which have adversely affected the stock market conditions, Krungsri views that investing in alternative assets such as private equity is an exciting opportunity for investors to enhance their investment efficiency. According to historical data, both Krungsri and BlackRock share the same opinion that alternative assets mostly generate returns that are less volatile than other types of assets in particular stocks and generally bear a low correlation to traditional assets. This implies that if investors can add alternative assets into their investment portfolio, they will have an opportunity to reduce risks and generate higher returns. Therefore, Krungsri Bank and Krungsri Asset Management opt for offering a fund that will enable investors to have an access to investments in high-quality private equity firms under the name of Krungsri Long Term Private Capital Fund – Not for Retail Investors (KFLTPC-UI) as an alternative for the investors. Most importantly, this fund will invest through BlackRock Long Term Private Capital, SCSp which is the master fund under the management of BlackRock, Krungsri’s world-class partner, which has long-term expertise and experiences in private equity investment. The master fund which was established in 2019 had been able to generate an accumulative return of 1.52 times of the investment capital and, amid the volatile stock market environment of this year, managed to generate a first-quarter return of -0.53%, better than the returns of listed stocks over the same period.”
Mrs. Supaporn Leenabanchong, Managing Director of Krungsri Asset Management Company Limited (KSAM) revealed, “Krungsri Long Term Private Capital Fund – Not for Retail Investors (KFLTPC-UI) invests through BlackRock Long Term Private Capital, SCSp, the master fund, which aims at achieving capital growth through the selection of high-quality companies that are expected to generate consistent return on equity.”
“The master fund adopts a strategy to invest directly in shares of private equity companies and acquire full or partial controlling ownership interest as an ‘active owner’ in these companies in order to enhance the capability and create higher value for the business, supported by the strong team of BlackRock, that is specialized in searching for the right portfolio companies, conducting in-depth data analysis, and brainstorming to create value-added for these companies. There are also business partners in a wide spectrum of industries to provide advice to the management team of these portfolio companies. The target portfolio of the fund will comprise investments in 10-15 companies with high growth potential in the sectors of consumer, financial services, technology, media and telecom, healthcare, industrials and business services, mainly in America and Europe.”
Krungsri Long Term Private Capital Fund – Not for Retail Investor (KFLTPC-UI) is an alternative investment that offers ultra-high worth investors meeting the qualifications specified by the Securities and Exchange Commission (SEC) an opportunity to invest in private equity along with institutional investors. It is launching the IPO during 25 July – 8 August 2022 with a minimum requirement for initial investment of 1 million baht. Interested parties can inquire about further fund information and request a fund prospectus from Krungsri Asset Management Company Limited; Tel: 02-657-5757; website: www.krungsriasset.com; or any branch of Bank of Ayudhya Public Company Limited.
- Investors should have an understanding of the product feature, conditions of investment return and risks before making investment decision.
- Past performance of the mutual fund is not a guarantee of future results.
- This fund is a high-risk or complex fund. Investors should seek additional advice before investing.
- This Fund has no investment risk limit as general mutual funds and is, therefore, suitable only for investors who can accept high level of loss.
- This fund is not permitted to be offered to retail investors. It is for institutional investors and ultra-high net worth investors only. This is a high-risk or complex mutual fund
Investment Policy of KFLTPC-UI
- Invest on average ≥ 80% of its NAV in an accounting year in a foreign fund named BlackRock Long Term Private Capital, SCSp (the Master Fund).
- Have a risk level of 8+ (Significantly High Risk) | The Fund is hedged against foreign exchange risk at the fund manager’s discretion and thus subject to the foreign exchange risk which may cause investors to lose money or gain profits from foreign exchange and/or receive lower return than the amount originally invested. (Normally the Fund will hedge against foreign exchange risk on an average of 80% of the foreign investment value.)
Krungsri (Bank of Ayudhya PCL and its group companies) is the fifth largest financial group in Thailand in terms of assets, loans, and deposits, and one of Thailand’s six Domestic Systemically Important Banks (D-SIBs) with 77 years of history in the country. Krungsri is a strategic member of the Mitsubishi UFJ Financial Group (MUFG), Japan’s largest financial group and one of the world’s largest financial organizations. Krungsri provides a comprehensive range of banking, consumer finance, investment, asset management, and other financial products and services to individual consumers, SMEs, and large corporations through 629 domestic branches (590 Banking Branches and 39 Auto Business Branches) and over 34,258 service outlets nationwide. The Krungsri Group is the largest card issuer in Thailand with 9.7 million credit cards, sales finance, and personal loan accounts in its portfolio; a major automobile financing service provider (Krungsri Auto); one of the fastest growing asset management companies (Krungsri Asset Management); and a pioneer in microfinance (Ngern Tid Lor).
Krungsri is strongly committed to the highest level of integrity in conducting its business. All Krungsri Group companies have been awarded accreditation from the Private Sector Collective Action Coalition Against Corruption (CAC) in collaboration with industry peers and stakeholders on a zero tolerance approach to corruption.
Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world’s leading financial groups. Headquartered in Tokyo and with over 360 years of history, MUFG has a global network with approximately 2,400 locations in more than 50 countries. The Group has about 170,000 employees and offers services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing. The Group aims to “be the world’s most trusted financial group” through close collaboration among our operating companies and flexibly respond to all of the financial needs of our customers, serving society, and fostering shared and sustainable growth for a better world. MUFG’s shares trade on the Tokyo, Nagoya, and New York stock exchanges. For more information, visit https://www.mufg.jp/english.