Group, among the largest asset management companies in Vietnam, plans to launch a private equity (PE) fund that will have a size of over $200 million early next year, DealStreetAsia cited the firm’s Managing Director and Chief Investment Officer as saying.
“$200 million is quite doable. It depends on our ability to deploy money in two to three years. If the money comes in too much and we cannot deploy it in that period, that is not good,” Andy Ho said on the sidelines of DealStreetAsia’s Asia PE-VC Summit held in Singapore last week.
The Vietnam-focused firm is scouting for investors that are keen to put in their money in the country. VinaCapital will decide the precise time and size of the fund on dependence of the deal opportunities.
“Now we invest in the range of $20-70 million mainly because the businesses are getting bigger and our funds are also getting bigger. In order to move and be more effective we have to move to larger opportunities,” Andy said.
The company feels that the larger the business opportunity is, the easier it is to exit later while smaller business opportunities are difficult to exit. “We want to invest in businesses that can stand alone and they can operate,” he said.
However, the fund manager admitted that raising a fund currently seems challenging at the moment.
“The challenge that Vietnam has is still there, which is single country exposure. A lot of investors that I talk to shy away from having a single country exposure. So we have to focus on those who are very interested in Vietnam,” Andy noted.
Founded in 2003, VinaCapital now managed three closed-ended fund with a portfolio of $1.3 billion in assets under management. It is looking to invest in sectors that contribute to the growth of domestic economy and service wealthy people.
Among the sectors that the firm will look at are healthcare, pharmaceuticals, hospitals, education, property and food and beverage.
VinaCapital in August unveiled a partnership with Shinhan BNP Paribas Asset Management to provide investment products to Shinhan’s clients in Korea, enabling them to get involved in Vietnam’s rising stock market.
The two companies will jointly develop funds invested in Vietnamese assets for Korean investors. They plan to launch the VIP Equity Fund, which will invest in publicly traded Vietnamese companies as well as those in Indonesia and the Philippines.