Mekong Capital’s fourth fund to invest $112 million in Vietnam

By MAF/Dam Tuan   May 17, 2016 | 09:06 pm PT
The main investment target of the fund is to reach a high internal rate of return by investing $112 million in Vietnamese consumer-driven businesses including retail and restaurant chains, consumer goods and services.

The investment fund also focuses on enterprises using the online and offline business model (bricks and mortar), especially in retail.

The Saigon-based private equity fund said that its fourth fund Mekong Enterprise Fund III Limited Partnership (MEF III) mainly prioritizes its investments in minority and buyout options worth $8 million to $15 million.


Mekong Capital's MEF III has stepped up its investment is Vietnam market. Photo by MekongCapital

The first equity fund focused on Vietnam is already making decisions on new investments. Mekong Capital mostly holds 25 to 35 percent stake in the companies it investes in, said Chris Freund, the founder and CEO of Mekong Capital.

MEF III will operate over 10 years and Mekong Capital expects it will make 12 investments in the first three years.

Mekong Capital’s current and past investments are in some of Vietnam’s fastest growing companies such as MobileWord (thegioididong), the country's largest mobile device retail chain with 306 stores, Phu Nhuan Jewelry (PNJ), with more than 170 stores, pharmaceutical firm Traphaco (TRA), restaurant chain operator Golden Gate, Masan Consumer and International Consumer Products.

Mekong Capital’s three existing funds have made 29 private equity investments in some of Vietnam’s leading companies in areas including retail, consumer products, education, distribution and manufacturing.

The increase in foreign ownership in Vietnamese enterprises opens more opportunities for MEF III to invest in retail, especially fast-moving consumer goods, currently one of Vietnam’s most exciting markets.

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