Mekong Capital invests $6.9m in Vietnamese restaurant chain Wrap & Roll

Mekong Capital’s latest $112-million fund, Mekong Enterprise Fund III, has invested $6.9 million in Vietnamese restaurant chain Wrap & Roll, marking its first investment since its launch in 2015.

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.

Also read:

Vietnam’s Mekong Capital hits final close of fourth fund at $112m, fails to meet $150m target

Exclusive: Mekong Capital raises $87m for its fourth fund, to begin making investments ‘within weeks’

Vietnam: Mekong Capital appoints first female partners

Vietnam’s Mekong Capital mulls partial exit from jewelery firm

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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.