Since 2011, KKR, one of the world’s leading investment funds managing assets worth $528 billion, has invested over $1 billion in Vietnamese companies. Notable deals include Masan Consumer, Vinhomes, KiotViet, and EQuest Education Group, showcasing its strategic focus on Vietnam’s dynamic market.
On December 10, Prime Minister Pham Minh Chinh welcomed Mr. David Petraeus, a co-owner of KKR. During the meeting, the Prime Minister acknowledged KKR’s significant contributions to Vietnam’s economic development through high-impact investments.
Success Stories in Vietnam
KKR’s approach to the Vietnamese market has been marked by lucrative short-term investments. Its first foray was the Masan Consumer (MCH) deal, where it invested $359 million for an 18% stake. By 2016, KKR exited the investment, reportedly doubling its capital.
Another notable success was with Masan Group (MSN), where KKR invested $100 million and earned $209 million upon divestment. Similarly, in 2020, KKR led a $650 million investment in Vinhomes (VHM), acquiring over 6.6% equity. Within a year, Viking Asia Holdings II PTE. LTD, a KKR affiliate, divested part of its stake, earning a profit of approximately VND 1,070 billion (~$44 million).
Challenges and Diversification
Despite its successes, KKR faced challenges, such as its investment in Masan MeatLife (MML). The $150 million investment in 2017 resulted in a $38 million loss upon divestment.
Beyond consumer goods and real estate, KKR has diversified into education and technology. It invested $22 million in EQuest Education Group, now holding nearly 55% of the organization through Equinox II PTE.LTD. In 2021, KKR led a $45 million Series B funding round for KiotViet, a tech platform supporting small and medium enterprises.
Future Prospects
In 2023, KKR reportedly negotiated with Singapore-based Heliconia Capital, owned by Temasek Holdings, to acquire Saigon Medical Group (MSG), Vietnam’s largest private eye hospital chain. While the deal’s completion remains unconfirmed, it underscores KKR’s continued interest in Vietnam’s healthcare sector.
KKR’s track record in Vietnam demonstrates its ability to identify and capitalize on high-growth opportunities, contributing to the country’s economic transformation while reinforcing its position as a leading global investor.
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Source: Vietnam Insider