There has been very minimal PE and VC onshore based activity in Thailand because quite simply the capital gains tax on such investments are too high, 30%. But with news that the SEC is slowly but surely relaxing regulations and despite that hubbub from the US that PE and VC firms are evil. I’m actually looking forward to this helping budding Thai entrepreneurs, I’ve always criticised with friends, and anybody who would care to listen, that it is virtually impossible for a Thai entrepreneur to crack the top 10 families here, due to lack of funding available unless you knew someone with deep pockets. So here’s hoping that there will be a change coming within the next decade.
Somchai Thaisa-nguanvorakul, chairman of the executive committee of SNC Former, said his company is a good example of how PEs can help small companies. Lombard Investment, a US-based private equity company, invested 600 million baht in it.
He said Lombard has helped SNC improve its operations and financial management, resulting in higher revenue _ from 8 million baht to 8 billion within six years of its investment.
Source: Bangkok Post