In a bid to boost investment activity in the frontier market, the Myanmar Private Equity and Venture Capital Association (MPE&VCA) has been formed by some of the most active players in the region.
The association has also received funding from CDC Group, the development finance institution wholly owned by the UK government, it said, in a statement.
Incorporated in May 2019, the association has 11 members including Anthem Asia, Daiwa PI Partners, Delta Capital, Emerging Markets Investment Advisers, Insitor Management, Myanmar Investments International, Myanmar Strategic Holdings, Seed Myanmar, Yangon Capital Partners and YGA Capital.
The association said in an announcement that it has received funding from CDC Group, the development finance institution wholly owned by the UK government.
“This launch is an important event for the financial services and investment community in Yangon and Myanmar. It marks a milestone in the development of the Myanmar economy since the country started opening up in 2012,” said Josephine Price, inaugural chairperson at MPE&VCA and the co-founder of Anthem Asia.
There is currently over $200 million in investment capital that is chasing opportunities in Myanmar. However, there is still a need to promote the role and understanding of venture capital and private equity in local economic development. MPE&VCA’s key role would be to link different stakeholders within the Myanmar market to provide a greater impact.
“Our early focus will include basic research, helping regional and international investment groups understand more about Myanmar, and being a voice for institutional investors with the Myanmar authorities,” said Price.
The association will rope in members from private equity, venture capital, investment firms as well as professional service providers.
Frontier markets in Southeast Asia such as Myanmar “are ready for investment,” Joshua Morris, CEO of Emerging Markets Investment Advisers told us in a recent interaction.
Myanmar has witnessed a spate of PE and VC funds since its economy opened up. The latest is Ascent Myanmar Growth Fund which has a $100-million target. Delta Capital is another active fund manager which has raised a total of $120 million through two investment vehicles.