Founded in 2006, Wrap & Roll operates 11 Vietnamese traditional food restaurants across Hanoi and Ho Chi Minh City. It also has four franchise locations in Singapore. Several more restaurants are expected to be soon opened in both Hanoi and Ho Chi Minh City, the busiest cities in Vietnam.
Post the investment, Wrap & Roll will launch a new concept restaurant chain in 2016 to address a different segment of the local dining market.
“In Wrap & Roll, we see an unusually strong commitment to continuously developing their management systems and the capabilities of their management team,” said Chad Ovel, partner at the Vietnam-dedicated private equity firm, which recently appointed its first two female partners.
Mekong Capital is not new to investing in the restaurant space having successfully exited from one of its portfolio firms, Cong Vang (Golden Gate), owners of several Vietnamese and foreign food brands.
Mekong first invested in Golden Gate in 2008 through the Mekong Enterprise Fund II unit. It divested its entire holding in the operator to Standard Chartered Private Equity in 2014, securing a 9.1x multiple. The deal was reported to be $35 million.
“We believe that with Mekong Capital’s previous experience investing and adding value to Golden Gate Group, combined with Wrap & Roll’s ten years of operating in the market, we will have a successful story to tell and to be proud of locally and internationally,” said Ovel.
Meanwhile, Nguyen Thi Kim Oanh, CEO-cum-Chairwoman of Wrap & Roll, commented: “We found Mekong Capital to be a credible partner to help us to grow sustainably. Mekong Capital not only funds the company but also supports our company with strategic consultancy in many management fields such as human resources, restructuring, management practices and corporate finance.”
Wrap & Roll is the first announced investee of the Mekong Enterprise Fund III, while Mekong Capital earlier said that the vehicle aimed to make around 12 investments.
The fund announced its first closing of $87.4 million last year and the final closing of $112 million in May 2016.
Mekong Enterprise Fund III will continue to focus on consumer driven businesses and companies that are committed to building up strong management teams, Mekong Capital said in a statement.