SSIAM established DAIWA-SSIAM Vietnam Growth Fund III
(Hanoi, October 31, 2020) SSI Asset Management Co Ltd (“SSIAM”) and its partner - Daiwa Corporate Investment Co., Ltd. (“DCI”) – a subsidiary
DAIWA-SSIAM III is a Private Equity (PE) fund which invests primarily in number of private and non-listed companies in Vietnam. The Fund 3 has target corpus size of USD100 million, 10-year term, 5-year investment period and is officially completed the initial closing as of October , 2020.
Vietnam has consistently been one of fastest growing economies in the world and the region’s top FDI destination. Healthy twin account surpluses with increasing foreign exchange reserves, improving local banking sector with stable interest rate and inflation, provide Vietnam macroeconomic stability and a stronger local currency. Extremely fast urbanization process, growing middle class and increasing disposable income are expected to drive strong growth in consumer related industries. While at the same time, local enterprises are benefited from global export opportunities, thanks to many strategic free trade agreements in place such as the EVFTA. Resilient and improving business environments, helped by the highly effective containment of COVID-19 and strong internal growth engines, further boost Vietnam unique competitiveness appeal.
The Fund 3 mission is to generate superior returns for its investors by effectively deploying capital and taking exposure in mainly private and unlisted companies in Vietnam with attractive risk-adjusted return profiles. The Fund 3 shall adapt active investment strategy, seeking to deploy its capital within sectors identified as particularly attractive within Vietnam and where the investment team has specific insight and experience, with a focus on consumer-related goods & services and export-oriented segments with room to expansion to local market, as well as other potential sectors including but not limited to: distribution, logistics, healthcare, education, media. In addition, the Fund 3 may also consider potential equitization or divestment opportunities of state-owned enterprises.
The Fund 3 will invest on a flexible mandate targeting equity upsides, supported through significant minority ownership position (10% to 30% stake in each investee company) and via active board participation where SSIAM’s professional investment team will join the Board of Directors and/or the Supervisory Board of the investee companies to optimize business operations, facilitate, connect and create ecosystems within the portfolio, thereby increasing the value of each business and the investment.
Daiwa Securities Group is the strategic shareholder of SSI Securities Corporation (“SSI”) and has been cooperating with SSI in many activities. The Fund 3 marks the third partnership between the two institutions’ investment subsidiaries, namely SSIAM and DCI. Previously, in October 2009, the parties established the DSCAP-SSIAM Vietnam Investment Growth Fund (“The Fund 1”) with corpus size of around USD 28 million. The Fund 1 has successfully divested from all 5 investee companies, and recorded a profit of 2.8 times or gross IRR of 38% on principal of investments over the 5-years holding period. In July 2015, SSIAM and DCI continued to launch the DAIWA-SSIAM Vietnam Growth Fund II (“The Fund 2”) with corpus size of about USD 40 million. The Fund 2 invests in 7 investee companies and is currently in the post investment and divestment phase.
The year 2020 marks a period of robust activities for SSIAM despite COVID-19 as the Company has successfully launched many highly anticipated funds such the 2 ETFs (SSIAM VNFINLEAD ETF and SSIAM VN30 ETF) and 2 Private Equity Funds (SSIAM-DBJ-CP Vietnam Growth Investment Fund “VGIF” and the Fund 3). With both private equity funds established in Q4.2020, SSIAM clearly demonstrated the determination to invest and further exploit the potentials of the private enterprises in Vietnam. To differentiate, VGIF would seek investment target of USD 10 million to USD 20 million each while the Fund 3’s focus is under USD 10 million investment. The introduction of new PE platforms, with SSIAM’s strategic partners being highly reputable & leading investors in Asia region, shall continue to support the development of Vietnam's capital market, facilitate capital mobilization opportunities more efficiently, and further promote IPO and listing opportunities for high-quality private enterprises.
About SSI Asset Management (SSIAM)
SSI Asset Management Company Limited (SSIAM) is a member of SSI Securities Corporation (SSI). Together with SSI, a Vietnam’s leading brand of specializing in securities services, investment advisory, underwriting, corporate finance and capital market services, SSIAM with a strong and professional team that trained in leading universities and financial markets around the world, has a diverse reputation and experience with a deep market understanding, providing domestic and foreign institutional investors and individuals with diversified investment products in the fields of fund management services, portfolio management, and value-added services.
About Daiwa Corporate Investment (DCI)
Established in 1982, Daiwa Corporate Investment is a private equity fund management company of Daiwa Securities. DCI has over 35 years of venture capital and over 15 years of buyout investment experience; there have been more than 600 Japanese and non-Japanese companies made IPOs from DCI’s investment portfolio