Vietnam has urged its major businesses, including the two biggest beer producers Habeco and Sabeco and leading dairy firm Vinamilk, to significantly sell the state ownership, saying to gain the most benefits to the state. In the private sector, VinaCapital, one of the top asset management firms in the country, is working with Shinhan BNP Paribas Asset Management to enable Korean investors to participate in the Vietnam market.
By Ishita Russell
Venture capital deal activity in the third quarter is 2016 has been the slowest since Q4 of 2011 both in terms of number of deals and aggregate deal value, after a robust run in the previous few years. 2,050 venture capital deals were announced globally worth $26 billion–the lowest number of deals and aggregate deal value seen so far in 2016.
Buyouts have gained momentum over the last six months, but the move towards such deals has been underway since last year. In the first six months of this year, both the volume and value of buyouts have surged. Mid-sized private equity firms are looking at growing their buyouts portfolios in search of better and more predictable returns.
The Vietnamese exchange might be based in Ho Chi Minh City, which endeavours to become the startup hub of the country and the “Silicon Valley of Southeast Asia”. The southern city currently operates a startup investment fund with the initial size of VND30 billion ($1.34 million), which will be boosted to VND100 billion next year.
This year, too, exits could remain strong but the pace of investments is likely to reduce as transactions, particularly in the consumer technology segment, have slowed down significantly. In 2015, deal volumes rose 10% with 213 exits reported—the best in five years, according to a report from Bain & Co.
There has only been 11 tech IPOs in Southeast Asia since 2005, while there have been 127 acquisitions during the same time period. Of the top ten M&As in the region by value, eight occurred within the last three years.
Indian startups have raised $3.5 billion in funding in the first half of 2015 and the number of active investors in India has increased from 220 in 2014 to 490 in 2015.
The exits come in the wake of the recovering commercial property market and its maturing structured debt investments in residential projects.
While several encouraging signs have emerged from the Asia-Pacific private equity (APAC PE) industry in 2014, Bain & Co notes that there are indication that PE in the region was transitioning from a market fueled by hopes to one that promises strong and sustainable performance. Last year’s activities showed that… Read more »