Vietnam’s VinaCapital reveals $626m private equity pipeline

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.

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.