SSI Asset Management Company Limited (SSIAM), a subsidiary of Vietnamese brokerage SSI Securities Inc, plans to launch a $100 million new fund in partnership with Japan’s Daiwa Securities Group, a top executive told DealStreetAsia.
Daiwa-SSIAM Fund III will be the third vehicle to be launched by SSIAM in collaboration with Daiwa. The new vehicle follows the $40-million Daiwa-SSIAM Fund II set up in 2016. The first $30 million private equity vehicle, DSCAP-SSIAM Vietnam Growth Investment, was established in 2009.
The Daiwa-SSIAM Fund III is targeting to hit the first close at around $30-40 million by the second quarter of this year.
“With an eight-year fund life, the new fund will continue to invest in listed and private equities in consumer-related sectors, including but not limited to retail, F&B, logistics, industrial production, pharma and healthcare. These target investable enterprises should generally have reasonable valuations and strong management that are willing to accept hands-on assistance,” Nguyen Phan Dung, deputy CEO of SSIAM, told us in an interaction.
“Technology is also seen as an interesting industry. SSIAM has been considering investment opportunities in the sector in the past, and will continue so in the near future,” he added.
He also said that the third fund’s limited partners will include existing investors of Fund II and new investors such as family offices, individuals and global banks and insurance companies.
SSIAM expects to close two to three deals from the third vehicle this year.
From the second vehicle, it has invested in six companies across industrial manufacturing, retail, pharmaceutical & cosmetics, agriculture and construction sectors. Leading mother and babycare retailer Concung is part of its portfolio.
“We are still closely working with the management team to achieve a shared vision. Concung has achieved significant growth milestones and will aim for $1 billion in revenue and IPO visibility within the next few years,” Dung added.
Earlier, the asset manager and its Japanese partner Daiwa had jointly managed DSCAP-SSIAM Vietnam Growth Investment from 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. It claims to have earned gross internal rates of return of 25-79 per cent on its investments.
Most recently, SSIAM and Korea’s NH-Amundi Asset Management Company Limited signed a memorandum of understanding (MOU) to promote SSIAM’s fund products in the Korean market.