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To achieve the business outcome, the SPV may acquire majority

shares in the portfolio company as well as the board seat and the
right to nominate key managing members in the portfolio company,

so as to gain control over the management of the portfolio company.

Once the expected rate of investment return reaches or exceeds a
defined minimum amount, the SPV will divest its investment by

exiting the portfolio company in order to realize its returns, either

through reselling the shares to another firm or proceeding with the
(43)
listing process in order to cash-out via an IPO. The investment

horizon of the private equity is typically three to seven years.

5 Should Extra Regulatory Measures be Introduced to

Control Cross-border Private Equity Transactions in the
Thai Market?

In Thailand, the regulators may still not have a conclusive answer on

the costs and benefits of the rise of private equity and how to address
this issue in their regulatory framework. Unlike the US and Europe,

this issue has not been a focus of the Thai academic and business

communityûs debate. This is evidenced by the current situation of no

(43)
See MÜLLER, supra note 4 (discussing that ç[t]he objective of the investors is to generate
an optimal risk-adjusted rate of return of their investments. The primary reward of the
investors is typically a capital gain which is only rarely supplemented by dividend yields.
In order to realize that capital gain, the investors typically plan for an exit of the company

investment already at the time of the initial investment. The holding period of the
investment lasts usually five to seven years); Baker, Filbeck & Kiymaz, supra note 4 at 4.

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