Chirathivat family’s CG Capital kickstarts with 10 billion baht

The Chirathivat family’s private equity fund, CG Capital Advisory, is kicking off its operations with an impressive 10 billion baht. The fund aims to capitalise on the recovering tourism sector by investing in hospitality and real estate.

CG Capital, spearheaded by Phoom Chirathivat, partnered with prominent institutional investors to channel this fund into investments in hotels and tourism-related businesses. These entities are located in Thailand’s prime tourist spots.

The fund’s inaugural investment is a 5 billion baht lifestyle mixed-use project in Phuket. The project includes the Standard Residences Phuket Bangtao condominium and the Peri Hotel Phuket Bangtao. Managed by Standard International, this boutique hotel is set to launch in April 2024 and will be completed by 2026.

Phoom, who also serves as a managing partner and co-head of CG Capital, believes that the Thai tourism sector has rebounded and grown significantly post-pandemic. This assertion is backed by the surge in the number of tourists visiting Thailand, which exceeded 28 million in 2023. Phoom remains optimistic about the return and surpassing of pre-pandemic foreign tourist levels soon.

The positive outlook for businesses in the tourism sector, coupled with its strong growth potential, was the driving force behind the establishment of CG Capital’s first private equity fund. Soravit Chairoj, another managing partner and co-head of the fund, further explained that the 10-billion-baht fund aims to primarily invest in tourism-related businesses.

These include hotels, serviced residences, amusement parks, water parks, and related mixed-use projects. The focus will be on key tourist locations such as Bangkok, Phuket, Samui, and Pattaya, to invest in three-to-five projects yearly.

Phoom added that their confidence in Thailand’s tourism sector’s bright future has been the foundation for the creation of the fund. They anticipate the next three-to-five years to witness a steady growth in both the quantity and quality of tourists, including expats and digital nomads, who view Thailand as a top global destination.

The company believes that investing in high-potential projects will bolster the development of tourism in Thailand while providing investors with superior opportunities for robust returns on their investments.

Soravit highlighted that private equity has emerged as an attractive investment class for institutional investors due to its agility in management, systematic investment process and criteria, and value creation. Consequently, it is gaining a larger share in global institutional investors’ portfolios. CG Capital, he added, is expecting an 18% Internal Rate of Return (IRR) per annum.

Phoom concluded by expressing his belief in the hotel business’s comeback, given the keen interest from foreign investors. He mentioned the high value of hotel business sales, which once stood at 12 billion baht but dipped to 4 billion baht in 2023. He assured that they are committed to building a high-quality hotel ready for the next group of investors, reported Bangkok Post.