Schroders and KBank Private Banking Partner to Launch First-of-its-kind China Private Equity Fund in Thailand

Private wealth investors in Thailand can now tap into China’s private equity market in RMB.

Schroders Singapore, in partnership with KBank Private Banking, today announced the launch of a China Private Equity Fund (“Fund”) in Thailand, offering private wealth investors an unparalleled opportunity to tap into the world’s second-largest private equity market. The Fund is managed by Schroders Capital, the private assets business of Schroders.

Leveraging off Schroders Capital’s established Qualified Foreign Limited Partnership (QFLP) programme in China, the strategy is co-developed with KBank Private Banking to provide differentiated access to a significantly wider and deeper universe of China’s RMB private equity market for private wealth investors in Thailand.

China’s private equity market RMB fundraising has grown over the past decade. In 2022, more than 90% of fundraising was in RMB, far outstripping the remaining 10% in USD1 . In recognition of the strong preference for RMB fundraising in China private equity, KBank Private Banking and Schroders Singapore co-developed the strategy to position investors favourably for the future of China private equity. The Fund represents the 6th dedicated RMB fund within the Schroders Capital portfolio.

In addition, the Fund is strategically designed to capitalise on opportunities from the dislocation in China's market by investing in leading high-growth companies that offer attractive discounts in the secondaries market. The strategy focuses on technology, consumer, and healthcare sectors, aligning with China’s development trends to leverage its vast domestic market of more than 1.4 billion consumers. By primarily focusing on secondaries, the fund has a shorter investment term compared to conventional private equity funds in the market.

Dr Triphon Phumiwasana, Senior Managing Director, Private Banking Business Head, Private Banking Group, Kasikorn Bank, said:

"KBank Private Banking believes that investing in private equity can help investors diversify portfolios and optimise long-term returns, especially during market uncertainties when firms may face short-term liquidity problems and are looking for partners to increase capital. China, being the world's second-largest in private equity fund-raising, offers a vast array of unlisted, high-potential companies. Our collaboration with Schroders on a China-focused private equity fund further broadens the investment spectrum beyond listed assets, paving the way for enhanced long-term gains for investors."

Ms Lily Choh, Head of South Asia and CEO Singapore, Schroders, said:

“China’s potential to be the world’s major growth driver in the medium term remains robust. We are pleased to partner with KBank Private Banking to bring our best-in-class China private equity strategy to private wealth investors in Thailand, a first in Southeast Asia, with exclusive access to institutional-grade offerings in the dynamic China private equity market.”

“The trend in allocating to private markets is accelerating as investors are increasingly seeking out alternative sources of return. Along with our global private equity investment specialists, we look forward to pioneering innovative solutions that resonate with our clients' evolving preferences to unlock a broad range of opportunities in private markets.”

Mr Jun Qian, Head of Private Equity China, Schroders Capital, said: “Schroders Capital is at the forefront of accessing the China private equity market for almost 20 years and has demonstrated a consistently strong investment track record. Among international asset managers, we have one of the largest local private equity teams in China with more than 20 deeply experienced local private equity specialists and supported by a global platform in 13 offices across the US, Europe and Asia.”

“The long-term fundamentals of the China private equity market remain highly appealing with attractive opportunities, especially in RMB secondaries. With limited players in the nascent China’s secondaries market, we are excited by this partnership with KBank Private Banking, where investors can tap into the fast-growing potential of China private equity.”