Vietnam’s Mekong Capital said to raise fifth fund at $250m by next year

Vietnam-focused private equity firm Mekong Capital plans a hard cap of $250 million for its fifth fund and expects to reach the target by early next year, DealStreetAsia has learnt.

The development was first reported by Private Equity International. We have independently verified the news from sources familiar with the firm.

The latest and largest vehicle in the Mekong Enterprise Fund (MEF) series is two times bigger than its immediate predecessor, the $112.5 million Mekong Enterprise Fund III that has so far announced nine investments.

It is understood that existing and past limited partners of the previous funds have returned to back its fifth fund called MEF IV, with participation from some new LPs in Japan and Korea. The fund manager is said to have hosted roadshows in Seoul, Tokyo and Hong Kong.

Chris Freund, Mekong Capital’s founder and general partner, told us in an earlier interview that Mekong Capital did not plan to do roadshows in the US or Europe, because he saw more and more investors now based in Asia.

With the double-down on committed capital, Mekong Capital is expected to write larger checks by around 50 per cent, bringing the investment size to the tune of $8-37.5 million.

In addition, there is a high possibility that MEF IV’s LPs will co-invest with it.

MEF III is currently the only active fund of the Ho Chi Minh City-based PE firm. Its Mekong Enterprise Fund II (MEF II) last August made a full exit from its last investment, Asia Chemicals Corporation, for a total consideration of $8.9 million, generating a gross return multiple of 2.6x and a gross IRR of 15.1 per cent.

Earlier, in January 2018, MEF II made a full exit from its investment in Mobile World Investment Joint Stock Company (MWG) at a returns multiple of 57x and IRR of 61.1 per cent, clocking one of the most successful investments in the industry in Asia.

In May this year, the PE firm announced two investments in pharmacy chain Pharmacity and Pizza 4P’s Corporation, both through MEF III.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.