PE trust introduced to support movie, digital content and animation industries
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The Securities and Exchange Commission on Friday introduced private equity trust (PE trust) to Thailand, as an alternative fundraising for movie, digital content, and animation industry growth.
"With PE Trust, businesses will not only have access to fund source for expansion but will also gain management expertise from professionals, enabling them to grow continuously, compete internationally, and certainly become one of key economic drivers," said SEC Secretary-General Vorapol Socatiyanurak.
The SEC encourages creative-based businesses, such as movie, digital content, and animation industries to participate in “The Pride in Thai Innovative and Creative Businesses” Project. The participants will learn of alternative fundraising channels which include going public and becoming a listed firm or PE trust.
This is expected to create value added products and services to propel recognition of Thailand’s innovation and creativity worldwide.
The project was kicked off with a special event today, titled “Capital Market for Digital Content”. It was co-organised by the SEC and the Thai Animation & Computer Graphics Association (TACGA) to provide business matching opportunity for movies, digital contents and animation industries to meet with institutional investors and high net worth individuals.
Showcase highlights included “Fawn” Prasarnsook Veerasunthorn, a story artist of the winner of 2014 Academy Award for best animated feature “Frozen,” and “Juck" Suponwich Somsaman, the founder of The Monk Studios, who has extensive experiences in Hollywood movie production including the Academy Award winner for best animated feature “Rango” in 2012. They shared with the investors their success stories reflecting high growth potential of the industries.
At present, lots of potential and capable digital content providers in Thailand lack adequate funding or need professional managers to help commercialise the creativity. Meanwhile, with limited information generally distributed, investors seeking potential businesses would have a slim chance to meet up with these business operators. At this juncture, the capital market offers additional fund source in a variety of channels including PE trust which will be an effective solution for both fund raiser and investors as it is managed by professional trust manager and invest in targeted businesses with high potential growth. The regulations on PE Trust have come into force since July 1, 2014.
“Movie, digital content, and animation industries are currently on the rise and backed by high caliber human resources. The SEC views that PE trust will be an effective financial solution for the industries to penetrate the international markets with even more creative masterpiece from their inspiration and imagination. This will generate benefits to related business sectors, increase national revenue, and drive changes in Thai economic fundamentals into a value creation and eventually into a high-income economy,” Vorapol added.
“The animation and computer graphics business is very promising. It serves not only movie industry but generates a plenty of benefits to other businesses as well. Creative-based businesses generate tremendous revenue for the country. We are confident that with strong support from the capital market, these businesses will flourish and become sustainable," said Nitipat Somsaman, TACGA president.
