Vietnam-based asset management firm VinaCapital is evaluating 21 private equity deals worth a total of $626 million, according to the latest monthly update by its flagship Vietnam Opportunity Fund (VOF).
About 43 per cent of the deals being evaluated are in the consumer discretionary sector. VOF is also looking at investments in healthcare, consumer staples, materials, industrial and IT.
Amidst a declining stock market, the fund – which invests across a spectrum of asset classes – expects the weight of its private equity portfolio to net asset value (NAV) to grow to about a quarter, from 14.5 per cent as of the end of September.
Public equities accounted for 66 per cent of the fund’s $920.8-million NAV as of September-end. Meanwhile, private equity was the only asset class to register a consistent increase in NAV since 2017 for the fund.
VOF recently announced it was leading a consortium to invest $21.4 million in local packaging firm Ngoc Nghia.
“Over the past year or so, we have evaluated more than 100 potential private equity investments and narrowed the pipeline to six companies with the greatest potential,” the fund said in the report, adding that it will likely announce several more deals in the coming months.
Since its inception in 2003, VinaCapital has seen its private equity portfolio outperform the VN-Index by 10.5 per cent. The fund manager has fully realised 28 private equity investments at a gross IRR of 20 per cent during the period.
Its divestments this year include budget carrier Vietjet, which saw it bag an internal rate of return (IRR) of 87.6 per cent and a 2.1x multiple after holding the stake for three years, according to the report. VOF had invested $38.4 million in Vietjet.
Other private equity portfolio companies of the firm, which has $3.3 billion in assets under management, include Tam Tri Medical, An Cuong Wood Working, CenLand and Ricons.