Vietnam’s SSI Asset Management, Japan’s Daiwa to launch $100m new fund

(Source: DealstreetAsia.com) SSI Asset Management Company Limited, a wholly owned subsidiary of SSI Securities Inc, Vietnam’s biggest brokerage

10/02/2020

(Source: DealstreetAsia.com) SSI Asset Management Company Limited, a wholly owned subsidiary of SSI Securities Inc, Vietnam’s biggest brokerage house, plans to launch $100 million new fund in partnership with Japan’s Daiwa Securities Group, DealStreetAsia has learnt.

The new fund, called Daiwa-SSIAM Fund III, is the third fund of SSIAM in collaboration with Daiwa, following the first $30 million private equity vehicle, DSCAP-SSIAM Vietnam Growth Investment established in 2009 and the second $40 million Daiwa-SSIAM Fund II established in 2016.

The Daiwa-SSIAM Fund III is set to hit the first close of around $30-$40 million by the second quarter of this year.

Mr. Nguyen Phan Dung, deputy CEO of SSIAM

“With a 8-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, pharmaceuticals and healthcare. These target investable enterprises should generally have reasonable valuations and strong managements that are willing to accept hands-on assistance.”, Mr. 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, international financial institutions such as banks and insurance companies.

SSIAM expects to close two to three deals from its third vehicle Daiwa-SSIAM Fund III this year.

In 2016, SSIAM closed a $40-million second fund with funding from Japan’s Daiwa Securities Group and other international investors. This vehicle to date has invested in 6 leading companies in sectors in Industrial manufacturing, Retail, Pharmaceutical & cosmetics, Agriculture and Construction Concung, the leading mother and baby consumer goods retail chain, is among the fund’s portfolio. “We are still closely working with the management team to achieve the shared vision. Concung has achieved significant growth milestones and will aim for $1 billion revenue and IPO visibility within next few years” Mr. Dung added.

Earlier, the asset management company and its Japanese partner Daiwa had jointly managed a $30 million first private equity vehicle, DSCAP-SSIAM Vietnam Growth Investment since 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, with gross internal rates of return from 25 to 79 per cent.

Most recently, SSIAM and Korea’s NH-Amundi Asset Management Company Limited have signed a memorandum of understanding (MOU) to promote SSIAM’s fund products in the Korean market.

Under the MoU, NH-Amundi will promote the existing VNX50 ETF, the recently IPO VNFinlead ETF (index of leading financial enterprises), or the upcoming VN30 ETF. In addition, the two companies may jointly launch various funds that will invest in the Vietnamese market.

Established in 2009, SSIAM is a wholly-owned subsidiary of SSI Securities Inc, providing fund and portfolio management services to help individuals and institutions to preserve and grow their wealth. The firm manages nearly VND 5 trillion to date and targets to grow AUM significantly in near future with ongoing products pipeline.