Tài liệu Vietnam Investment Funds Review of Private Equity exits ppt

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Vietnam Investment Funds

Review of Private Equity exits

Grant Thornton Vietnam January 2011

Introduction

There is a perception by many in the market that

Vietnam’s private equity focussed investment funds

have difficulties in achieving exits from their

investments. With the tightening of capital markets

following the global financial crisis it is through exits

that fund managers have been able continue to make

new investments without raising additional capital. As a

result, the level of exits that have been actually achieved

by the fund managers is of significant importance to the

industry.

Grant Thornton Vietnam sought to bring clarity to

the true level of exit activity being achieved by

surveying the leading fund managers. Although

participation in the survey was voluntary, the fund

managers that participated provide a representative

sample of the leading managers, most with a well

established track record.

The survey was conducted in December 2010, and

includes data up to 30 November 2010. Questions

covered investments made, exits achieved, method of

exits and the length of time that investments were held.

For the purposes of the survey, a “private equity”

transaction has been defined as an investment in the

equity of a company in Vietnam, which is not listed or

in the process of listing, and where a minority

ownership position exists. This will often include

minority protection for investors and board positions,

however this will depend on each individual

investment.

Summary

Survey results show that the participating fund

managers have invested more than USD1.8 billion in

private equity investments in Vietnam since 2003, in

almost 200 companies. 2007 saw the largest number of

investments made, both in value and in number, with a

substantial decrease seen in the following years.

During 2003 - 2010, the period covered by the

survey, 150 full and partial exits have been achieved by

participating fund managers in Vietnam. The average

holding period was approximately three years for each

full and partial exit achieved. The average holding

period has been trending upwards over the survey

period, with exits in 2010 taking, on average, between

four and five years.

Stock exchange listings have continued to be the

predominant method used by fund managers for exiting

from their investments, accounting for over 60% of all

exits.

Fund Manager First year

established

Active

investment

funds

Funds

managed

(USD

millions)

Dragon Capital 1995 8 1,000

Indochina Capital 1999 8 545

Mekong Capital 2002 3 150

Prudential Vietnam 2002 3 1,300

VinaCapital 2003 6 1,730

BankInvest 2007 2 250

AIM Capital Management 2009 2 18

Participating Fund Managers