New private equity company to boost Lao business
New private equity company to boost Lao business
The new private equity fund expects to grow companies in Laos through financing and expertise.
On May 8th, Lao National Chamber of Commerce and Industry together with Lao Golden Capital LLC held a business forum with 40 company representatives in attendance. Some of the companies attending included EDL-Generation, Lao Airlines, Dao-Heuang Group Lao Golden Capital was represented by Sergei V. Pliutsinski, its founder.
Mr KhanthavongDalavong, Secretary General of LNCCI, coordinated the event, pronounced the opening remarks stressing the importance of the event to the companies, while Dr SananhChounlamany, Vice-President of LNCCI gave an opening speech describing the purpose of the event and emphasing the potential benefits that companies can get by participating in the private equity investment process.
After the initial remarks, Lao Golden Capital co-founder, Sergei V. Pliutsinski gave an hour-long overview of the private equity process and its significant benefits to Lao private companies. In an economy growing at 8 percent per year, many businesses find it extremely hard to sustain growth relying solely on bank loans, explained Mr Pliutsinski. Most loans in Laos tend to be short term and are not well suited for a company that needs to make longer-term investment decisions. Mr Pliutsinski further stressed that companies not only get the opportunity to obtain another form of financing, they also get more operating expertise, marketing and technological resources to help their companies grow and reach the global levels of enterprise management. Our sole objective is to help Lao companies succeed by growing their businesses and become more competitive, remarked Mr Pliutsinski. The investor benefits by participating in the success of a business; however, the companies' current owners benefit the most, as they continue to own the majority of the company.
Sin ce the private equity process is new to Lao companies, many business representatives asked follow-up questions regarding the terms of equity investment, percentage of ownership and whether state companies can get an access to this type of financing. Overall, the event accomplished its stated objective and raised awareness among the business owners that they have alternative financing options and can grow faster if they choose to take advantage of it.
Lao Golden Capital is the first Laos focused private equity fund whose founders combine many years of experience in capital markets in the United States, Europe and the rest of Asia. The fund is targeting to raise US$50 million initially to invest in various part of Lao economy.
vientiane times
