SSIAM established Vietnam Growth Investment Fund (VGIF)
(Hanoi, October 14, 2020) SSI Asset Management (SSIAM) and its partners - CT Bright (CTB), Charoen Pokphand Group’s (CP Group) flagship investment platform
After months of focusing on research and establishment of a new fund, as well as monitoring and evaluating the potential of market development, on the morning of October 14, 2020, the representatives the parties have officially signed the agreements on establishment of the Vietnam Growth Investment Fund (VGIF).
VGIF is a member fund which is investing in private companies (Private Equity - PE) with estimated size of USD150 million, 10-year term, 5-year investment period and is officially established as of October 14, 2020. With flexible investment method, the fund’s main investment focuses are consumers goods and other sectors with high competitive advantages in Vietnam, mainly in essential industries that have many driving growth factors due to the change in demand/consumption, attractive supporting policies and high annual growth rate including food and beverages; retail; medicine/health; electricity/energy; water…
The VGIF's objectives focus on 3 main points, including (i) Companies that have competitive advantages and the potential to grow rapidly in the coming years; (ii) Companies with listing potential or privatize state-owned companies with attractive valuation; (iii) Listed via PIPEs, or spin-offs of listed group subsidiaries.
Vietnam is considered to be a potential economy with a fast growth rate and a "golden" population structure, in order to capture development opportunities in the coming years and contribute to improving production and business capacity for the domestic business community, SSIAM has actively sought for and associated with investment partners from abroad to enhancing financial capacity for Vietnamese businesses. Along with that, the company wishes to contribute to the management experience and customer network of the parties, thereby creating added value for the business. The two partners of SSIAM which are CTB and MIC are both big names in the international market. CTB is CP group’s flagship investment platform and has over USD10 billion investments and board participation with Ping-An, Itochu, and CITIC. CTB has been working actively with the portfolio companies to forge a strategic partnership. Meanwhile, MIC - with the backing of DBJ under the Government of Japan - also possesses strong financial potential, global network and financial investment management capacity at many markets, especially ASEAN and China. MIC is also the leading fund management company in Japan with AUM about USD2.0 billion.The VGIF will receive support from Advisors who are the most influential and reputable leaders in Asia business world: Mr. Nguyen Duy Hung – Founder and Chairman of SSI Securities Corporation, Mr. Soopakij Chearavanont - Chairman of CP Group, and Mr.Yang Xiaoping - senior Vice Chairman of CP Group and CEO of CP China and CTB.
In addition to co-investment in capital contribution, the three fund founders are SSIAM, CTB and MIC will coordinate with each other in all aspects such as management of fund operations, capital mobilization, enterprise appraisal, investment decision making... SSIAM as the “host” is responsible for finding, approaching and negotiating investment opportunities in potential businesses in the Vietnamese market. Furthermore, the investment team of SSIAM will directly participate in the board of directors of the investee enterprises to improvement of management capacity and operational efficiency for the business, as well as protect investors' interests.
Since Private Equity fund’s main focus is on private and unlisted companies, hence, the short-term fluctuations of the Vietnamese stock market have no actual impacts on the fund’s operation at the time of its establishment. On the other hand, the success in preventing the Covid-19 pandemic also brings many great growth opportunities for domestic enterprises in the coming time. The stock market is waiting for many positive news such as: market upgrade, investor protection and support policies, T + 0 trading, expand foreign ownerships in limited industries, etc. With interest rates continuously falling, investors in the market are always looking for new investment opportunities, and the VGIF is a worthy choice to consider, especially in the context of market volatility like nowadays.
Previously, SSIAM managed DSCAP-SSIAM Vietnam Growth Investment Fund LLC and DAIWA-SSIAM Vietnam Growth Fund II L.P. The success of those growth investment funds will bring a lot of experience to VGIF, especially from the perspective of fund operations and investment processes for foreign partners. In addition to these experiences, the establishment of VGIF also comes from the past investment performance of SSIAM while implementing proactive investment strategies when accompanying and creating added value for businesses in the investment portfolio. This is also the highlight of VGIF with the support from CTB and MIC. The VGIF establishment itself also creates a PE fund combination that is capable of investing in larger deals, broader the number of investment opportunities and increase the strength of negotiation as well as the divestment ability.
At the signing ceremony, Ms. Le Thi Le Hang - CEO of SSI Fund Management Company Limited (SSIAM) said: “2020 has been a memorable year for SSIAM as we successively established new funds such as: SSIAM VNFIN LEAD ETF, SSIAM VN30 ETF and the upcoming Private Equity Fund - VGIF. Thus, besides the open-ended funds, which are SSI-SCA fund (Focusing on the stock market), SSIBF (Focusing on fixed income assets), SSIAM has a diversified product portfolio, meeting the needs of many investors. We will continue to promote the ETFs in line with the general trend, however, the launch of the PE fund is considered to be ahead of the market trend, as PE funds are not popular among domestic investors. However, with the growing economy and increasingly diversified investment needs, with a longer-term vision, we believe that VGIF will achieve many successes in the future.”
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 CT Bright (CTB)
CTB is Charoen Pokphand Group’s flagship investment platform and has over USD10 billion investments and board participation with Ping-An, Itochu, and CITIC. CTB has been working actively with the portfolio companies to forge a strategic partnership.
About Mercuria Investment Co. LTD (MIC)
MIC was established in 2005 having Development Bank of Japan (DBJ) as a main sponsor and Itochu Corporation and Sumitomo Mitsui Trust Bank joined as strategic partners in 2015.MIC has been listed on the Tokyo Stock Exchange since 2016 (code 7190). Regarding of investment, MIC has successfully managed 10+ investment funds so far, including growth fund, buyout, Venture Capital.