Khao Kla plans SME fund next year to tap recovery

       Khao Kla Venture Capital plans to establish a new fund next year to support small enterprises due to the improving economy.
       The new venture capital fund would raise about 500 million baht next year,said Patamaporn Chaiyakool, managing director of Khao Kla Venture Capital Management Company. The new fund would invest in small and medium-sized enterprises with high growth potential.
       The fund would be similar to Khao Kla's existing K-SME Venture Capital fund, but would differ in features and investment policy.
       The new fund would allow other investors, who might not be required to have SME experience, to investment.
       "We want to create a new concept of venture capital fund to develop the business and openings for other investors to join the investment," she said.
       "The financial support would help to grow and strengthen local SMEs, particularly under the improving economic situation in next year."
       K-SME Venture Capital, a business unit of Kasikornbank under Khao Kla's management, allows the fund to hold a maximum share-stake of 50% of registered capital of each SME. The venture capital fund also requires at least a three year track record for each SME.
       The company's total investment portfolio is 173 million baht invested in 10 SMEs, five of which plan to list on the Market for Alternative Investment.
       Khao Kla, yesterday, signed a jointventure agreement with Zemasch Corporation Ltd to provide the SME with 19.95 million baht of financial support.
       Zemasch plans an initial public offering of shares totalling about 100-200 million baht on the MAI next year. Funds raised would be used for business expansion and developing new products.