Lakeshore Capital has closed its third fund focused on Thailand and the Greater Mekong region at the hard cap of USD 305m.

The firm opted not to increase the hard cap despite the fund being substantially oversubscribed, according to a statement shown to AVCJ. Participating LPs include asset managers, sovereign wealth funds, insurance companies, funds-of-funds, and family offices.

Lakeshore Fund III launched last year with a target of USD 250m, the International Finance Corporation (IFC) said in a disclosure. It committed USD 60m, split equally between the fund and a co-investment allocation.

IFC was an anchor investor in Lakeshore’s debut fund, which closed on USD 60m in 2014. It re-upped as the private equity firm scaled to USD 150m for Fund II in 2021.

“Fund III builds on the same investment philosophy that has underpinned Lakeshore since inception – partnering with strong mid-market businesses and working closely with management teams to accelerate growth and drive operational transformation,” Anotai Adulbhan, co-founder and managing partner of Lakeshore, said in the statement.

“We see significant opportunities across the Greater Mekong region, particularly in sectors supported by rising consumption, urbanisation and the development of the middle class.”

The fund will target growth and buyout investments in mid-market businesses across Thailand, Vietnam and the wider Greater Mekong region. It will prioritise companies that have the potential to expand within Southeast Asia or drive industry consolidation.

Lakeshore recorded two wellness and beauty exits in 2024, both to Japanese buyers. A unit of Suntory Holdings picked up NBD Healthcare for an undisclosed sum and then Kose Corporation acquired Panpuri for an enterprise valuation of about USD 100m, enabling Lakeshore to sell its 40% stake.

“We act like a catalyst, building local Thai companies to a standard and scale where they can be safely acquired by foreign buyers,” Panaikorn Chartikavanij, co-founder and managing partner at the firm, told AVCJ following the Panpuri sale.

“We need to be able to put in place governance, strategic direction, and the right level of talent in the organisation. Without taking all those transformative actions, it’s not easy for a foreign operator to acquire.”

Earlier this year, Lakeshore placed 12th in a global performance ranking of growth capital private equity firms conducted by HEC Paris business school. The study analysed 440 funds raised by 183 growth capital managers between 2012 and 2021.

Asante Capital Group acted as exclusive global fundraising adviser for Fund III, while Kirkland & Ellis served as legal adviser.

Lakeshore declined to comment.