Lombard Investments has raised $350 million, including the GP's own commitment, for its latest private equity vehicle focused on Thailand, according to a source with direct knowledge of the matter.
Lombard declined to comment on its fundraising activities. However a filing from the US Securities and Exchange Commission in late August showed the firm had recently raised $125 million from investors.
The firm had also made a first close on $200 million in September 2012 after receiving $125 million by June 2012. That amount included $100 million from the Overseas Private Investment Corporation and $25 million from the International Finance Corporation, Private Equity International reported earlier.
The San Francisco-based firm launched its fourth private equity vehicle in 2012 with a hard cap of $350 million. Lombard Asia IV will largely focus on growth capital or buyout investments in Thailand. The fund has a 35 percent cap on how much it can invest outside Thailand and it expects to ultimately make 80 percent of its investments in the country, PEI reported earlier.
Industry sources have noted that a fund of such a large size for a frontier market was a hard sell to investors, many of whom are now looking for pan-Southeast Asia GPs or Indonesia-focused country managers.
Nevertheless, Lombard has had success in the Thai market. In 2011, the firm exited two of its investments gaining a 7.1x return on shopping mall developer Central Pattana and a 3.5x return on its exit from auto parts manufacturer Somboon Advance Technology, according to earlier statements from the firm.
Managing director of Lombard Pote Videt told PEI earlier, “Thai politics has captured headlines globally while the underlying strength of the economy has been underreported. Despite political uncertainties in 2010, Thailand’s economy still grew at a nearly 8 percent rate, and the stock market was one of the best performing in Asia.”