Kiatnakin Phatra Securities (KKPS) is seeing its 2019 entry into private markets pay off as the business reaches a new phase of maturity. Early investments made by clients, particularly private equity, are now maturing, allowing KKPS to roll liquidity into new vintages.

In this new strategic phase, many long-term clients have seen their penetration into private markets hit “optimal exposure,” with the focus now on maintaining allocations through reinvestment rather than initial discovery, Narit Kosalathip, head of the wealth management group at KKPS, told Asian Private Banker.

While the standard recommendation typically ranges from 10% to 15% based on investor appetite, more sophisticated clients may see allocations of up to 20% depending on their specific needs and portfolio suitability, Jon Wongswan, managing director, head of investment solutions department, wealth management, Kiatnakin Phatra Securities, shared. 

“From the outset, the goal was not simply to expand shelf space, but to build alternative solutions and offerings based on open architecture, best-in-class global managers and focusing on diversification across asset classes, strategies, managers, and vintages,” said Vatanyuta Chawengsri, senior vice president, head of private markets and discretionary portfolio management. 

The Thai wealth manager has reached nearly US$2.5 billion in assets under management (AUM) and capital commitments across its alternative platform.

Tactical caution amid redemption headwinds

Despite a global wave of liquidity-seeking among retail and private wealth investors beginning to test the nerves of the private credit market, KKPS has managed to avert significant outflows through a combination of specialised fund structures and an intensive communication strategy. 

Yet, the firm is not being complacent. Kosalathip said the firm intentionally postponed the launch of a new asset-backed private credit fund, originally scheduled for March, to avoid fundraising headwinds, although it is continuing client education and marketing. 

This tactical caution comes as KKPS continues to refine its broader platform, which is currently anchored by three primary investment structures spanning private equity, private credit, real estate, and hedge funds. 

Recent additions include asset-backed financing with an investment-grade focus, complementing existing offerings across other strategies and asset classes. This expansion is designed to enhance diversification and provide high-quality, low-correlation options for clients, Chawengsri explained. 

By utilising an open-architecture model, KKPS provides a mix of onshore and offshore solutions designed to align global manager access with Thai regulatory requirements and local investor preferences. It’s a model centred on a full-cycle advisory process from sourcing and due diligence to portfolio construction, ongoing monitoring, and client education, she added. 

Expanding into hedge funds

Building on its 2019 private equity foundation, KKPS officially introduced its first hedge fund offerings in late 2024. Apinya Ongkunarak, assistant managing director and the head of hedge funds, noted the timing as “quite opportune,” as private wealth investors increasingly seek hedge funds to navigate heightened market volatility.

To build this hedge fund shelf, KKPS leverages its five-year track record in private markets to secure access to difficult-to-access global managers who often have long waiting lists. This relationship is reciprocal: KKPS provides these managers — many of whom have saturated North American and East Asian markets — with a new, untapped pool of high net worth Thai investors.

Since the launch, the firm has focused on establishing a long-term foundation rather than removing strategies. The current stable of funds is designed for resilience across market cycles, specifically onboarding multi-strategy, multi-manager, global equity long/short, and systematic funds to ensure a diversified shelf for investors, Ongkunarak explained. 

Manager selection 

This expansion is underpinned by a due diligence framework that has governed the firm’s selection process since its entry into alternative investments.

Chawengsri said the team selects managers using a “Four Ps” framework: Philosophy, Process, Performance, and People. KKPS places greater emphasis on team-based organisations rather than so-called star managers, with the aim of ensuring that performance is more repeatable, consistent, and less dependent on any single individual. 

By focusing on disciplined investment processes and resilience across market cycles, the firm seeks to keep outcomes within its expected range despite ongoing macroeconomic uncertainty.

However, maintaining these rigorous standards requires a level of transparency that Chawengsri noted is often missing for the end investor.

She points out a significant structural barrier: while fund selectors get deep access to information, that data often stops there.

Currently, the information allowed to reach end-clients is quite limited, especially for regulated semi-liquid funds. Chawengsri argues that GPs could innovate by finding ways to provide more uniform yet detailed information that can be shared legally with individual investors, helping them feel more connected to the underlying assets.

“We want to see GPs who evaluate their own performance and process. Some managers exhibit overconfidence throughout the cycle, which makes us wonder if they are truly on top of the situation or even recognising the issue,” added Wongswan.