The newly launched $50-million fund is a 50-50 joint venture between Mayban Ventures of Malaysia and Japan Asia Investment Co Ltd (JAIC). Carrying a six-year tenure, 30 per cent of the fund will be invested in Malaysia and the rest in Singapore, Indonesia, Thailand and Vietnam.

Although he declined to release names, Inomata said five to 10 Thai firms would make it onto the fund's short list, then three or four selected. He added that targeted companies were engaged in the automotive, manufacturing, information-technology and service sectors.

"We will invest in profit-making companies planning to seek a listing over the next couple of years. Revenues [of the targeted firms] will be $5 million to 10 million, but size doesn't matter. We expect at least a 25-per-cent internal rate of return from the investment," said Inomata. "We will not invest in seed companies, properties or construction companies, nor in listed companies. We once invested in property ahead of the financial crisis, and we lost."

One of Japan's largest private-equity and venture-capital companies, JAIC has made its presence felt in Thailand since 1988. At that time, it launched JAH Bangkok, which has since invested more than $200 million in 70 companies, including Thai Wah Resorts Development Plc, Aromatics (Thailand) Plc, Noble Development, Thai Mitsuwa Plc, Tapaco Plc and Daidomon Group.

In 2003, JAIC teamed up with the Vnet Group to set up Thai Automotive VCF, which has since invested in six companies connected to the automotive industry, including T Krungthai Industries Plc, Yarnapund Plc and Interhides Plc.

Commenting on Thailand's  political uncertainty, Inomata said it may confuse investors but not hurt the economy, and the new government would be able to proceed accordingly.

Oranan Paweewun

The Nation