Mekong Capital announces US$246-million investment fund in Vietnam

Mekong Capital has announced the final closing of subscriptions for its fifth fund, Mekong Enterprise Fund IV Limited Partnership (“MEF IV”) at US$246 million, more than double its predecessor, Mekong Enterprise Fund III.

The fund will focus in particular on retail, education, restaurants, consumer services, FMCG, and health care.

“MEF IV will continue Mekong Capital’s successful strategy of investing in growth-equity investments in Vietnamese companies and exclusively in proven consumer-driven sectors that benefit from the growth in Vietnamese consumer demand and the adoption of modern business practices,” noted the fund in a statement.

The fund will focus in particular on retail, education, restaurants, consumer services, FMCG, and health care.

“MEF IV applies Mekong Capital’s Ontological Private Equity approach and the Vision Driven Investing framework with an intention to fulfill its commitment for each investee company to achieve its vision,” it said.  

MEF IV typically targets investments ranging from $10-35 million, and can make both minority and buy-out investments. MEF IV has a 10-year life, and expects to make a total of approximately 12 investments.

“Over the last 20 years since Mekong first established its operations in Vietnam in early 2001, Vietnam has consistently been a forward-looking, stable, and attractive investment destination,” said Chris Freund, founding Partner of Mekong Capital.

“The people of Vietnam are welcoming and open-minded. Vietnam’s middle class continues to emerge as the driving force in the economy, and provides a robust base for the country’s ongoing growth,” he added. 

“Meanwhile, a new model of Private Equity has been emerging in Vietnam, a model based on transformation and human experience. We look forward to Vietnam emerging as the world capital of transformation,” Mr. Freund asserted.