MEF II, a Vietnam-focused private equity fund of Mekong Capital completed divestment in the country's leading distributor Asia Chemical Corporation (ACC), announced the fund on August 10.
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The fund initially invested US$3.8 million in ACC in 2011, which was its 10th and final investment.
Established in 2001 as a privately-held company in the food industry, ACC has pivoted into a leading distributor of high-quality specialty ingredients, chemicals, non-oil related commodities and other materials, sourcing from worldwide suppliers and selling to a wide range of leading enterprises in Vietnam.
The company specializes in providing products and services to various industries including Food & Seafood, Dairy & Beverage, Cosmetic, Pharmaceutical, Bakery & Confectionery, Feed & Veterinary and other industrial applications including Paint, Textile and Personal Care, among others.
ACC achieved a cumulative annual net profit growth rate of 18% over the holding period of the investment.
"The completion of the sale of the final holding in MEF II bring to a close the life of what has proved to be a most rewarding fund investing in new and fast-growing companies in Vietnam," said Jeremy Paulson, chairman of MEF II.
"MEF II, through its Investment Manager, Mekong Capital, found an interesting range of investments which fully reflected the rapidly changing consumer sector in what was a fast-growing economy. This has resulted in a highly successful investment for MEF II's shareholders," he added.
The divestment marked MEF II's final investment, which resulted in the fund achieving a net return multiple of 4.5x and net IRR of 22.5% for its investors.
MEF II completed the sale of its last remaining 5 million shares in Mobile World in January 2018, resulting in a 56.9x gross return multiple and 61.1% gross IRR, making this investment being one of the most successful investments in the history of Asian Private Equity. Prior to that, the fund generated a gross return of 4.5x and 9.0x for its investments in Vietnam Australia International School and Golden Gate, respectively.
Launched in 2006, MEF II is the second private equity fund managed by Mekong Capital. MEF II's notable investments included Mobile World (Vietnam's largest nationwide retailer of mobile devices and consumer electronics), Golden Gate (the leading restaurant chain operator in Vietnam), Vietnam Australia International School (a leading private bilingual K-12 school in Vietnam), Mai Son (a leading fashion retailer) and ICP (personal care products).
