Vietnam: Saigon Securities unit closes $40m fund to invest in listed, private firms

Nguyen Duy Hung, chairman of SSI Asset Management.

SSI Asset Management (SSIAM), a unit of Vietnam’s largest brokerage house Saigon Securities Inc, has closed a $40-million fund last week, with funding from Japan’s Daiwa Securities Group, said a senior executive with the firm.

The announcement followed another disclosure that SSIAM will launch a $200 million Luxembourg-domiciled, open-ended fund by the end of June.

The $40 million fund will make investments in both listed and private equities, said Nguyen Duy Hung, chairman of SSIAM and its parent securities firm, according to the NDH.vn, a media outlet owned by Hung.

SSIAM and its Japanese partner had previously jointly managed a $30 million private equity vehicle, DSCAP-SSIAM Vietnam Growth Investment, since 2009 until the liquidation date of October 2015.

Its investees include tech firms Elcom and VMG Media, Noi Bai Cargo Terminal Service, construction materials provider Vinh Tuong Industrial and Quang Ngai Sugar, with gross internal rates of return from 25 to 79 per cent.

DEALSTREETASIA reported earlier this year that Daiwa Securities was keen to increase its holding in Saigon Securities Inc to around 15 per cent from 10 per cent. The transaction was then implemented in April, which resulted in a 15.54 per cent ownership for the Japanese financial investor.

Also read: Daiwa Securities to inject $177m to hike stake in Saigon Securities, Malaysia’s Affin Hwang

Share price of Saigon Securities Inc rose 0.5 per cent on Thursday, reaching VND21,300 ($0.95) apiece.

Meanwhile, the $200 million fund, named SSIAM UCITS – Vietnam Value Income and Growth Fund (VVIGF), will focus on undervalued listed assets in Vietnam, and is tailored to European individual investors.

Through VVIGF, SSIAM will not hold major stakes at invested companies but instead try to diversify the listed portfolio.

Earlier in December 2015, the Vietnamese fund manager kicked off a sub-fund in collaboration with Andbank Asset Management Luxembourg. Also an open-ended fund, of which SSIAM plays as the portfolio manager, Andbanc Investments SIF – Vietnam Value and Income Portfolio aims to acquire big stakes of portfolio ventures and join their management boards. Investors of this unit are large institutions from Europe.

Other funds under SSIAM are the VND1.7 trillion ($76 million) closed-end SSIVF; $23 million SSI Investment Member Fund, an onshore fund to invest in overseas property markets; open-ended balanced fund SSI Sustainable Competitive Advantage Fund, and SSIAM HNX30 ETF that tracks the performance of the Hanoi Stock Exchange’s 30 largest stocks in terms of market capitalisation and liquidity.

On the venture capital side of investment, Hung reportedly said he had VND100 billion in kitty to invest in startups but had yet found any promising companies. One of the 10 richest on the Vietnamese stock market, Hung is also chairman of The PAN Group, a diversified business with a focused operation on agriculture. He is targeting to invest in agribusiness and agri-tech startups.

Also read:

Pan Pacific has a mission to invest in agriculture: Nguyen Duy Hung

Vietnam’s PAN Food ups stake in Bibica to 42.25%

IFC invests $6.5m in Vietnam’s Pan Pacific

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.