Vietnam-focused private equity firm Mekong Capital has completed the divestment of Minh Hoang Garment, the last portfolio company in its Mekong Enterprise Fund.
The deal follows the divestment of Mekong’s stake in Asia Chemicals last month and the liquidation of the Vietnam Azalea Fund last year. With this, Mekong Capital has fully exited all investments made from its first three funds. Financial details of the transaction were not disclosed.
Mr. Chris Freund, Partner at Mekong Capital, shared: “With the exit of Minh Hoang, we are so delighted to have completed the divestments of all of our first 3 funds. This enables us to focus on our newer investments in Mekong Enterprise Fund III, partnering closely with each of those companies to ensure they each achieve their vision.”
Minh Hoang is a local producer of sports apparel, active-wear and outerwear.
In total, Mekong Capital has completed 26 exits of private equity investments across these three vehicles. A number of exits under the Vietnam Azalea Fund were investments in privatized state-owned companies.
Earlier this year, Mekong Capital announced its exit from Mobile World, Vietnam’s multi-concept retailer, at an impressive 57x multiple. Restaurant operator Golden Gate was another successful investment with a 9.1x return upon exit.
The fund manager has a value creation platform called Vision Driven Investing with the aim to generate at least a 5x return for each investment, and is intensively applying it to all portfolio companies in its active Mekong Enterprise Fund III (MEF II), which has announced seven investments so far.
With the winding-up of the first three funds, Mekong Capital plans to raise its Mekong Enterprise Fund IV in the first half of 2019.
About Mekong Capital: It is a Vietnam-focused private equity firm, specializing in consumer driven businesses and looking to invest in fast-growing companies, with ambitious expansion plans, and a commitment to building management teams that will successfully execute on those expansion plans. Mekong Capital’s funds have completed 33 private equity investments in Vietnam, of which 26 have been fully exited. Its latest investment vehicle, the Mekong Enterprise Fund III (MEF III), has to date announced investments in 7 companies, including lending firm F88, logistics companies Nhat Tin and ABA, restaurant operator Red Wok, Ben Thanh Jewelry, Yola Education, and mattress retailer Vua Nem. All investee firms in MEF III are implementing the Vision Driven Investing framework.
For information about Mekong Capital, visit: www.mekongcapital.com.