SSIAM teams up with CP Group and Development Bank of Japan for $150 million PE fund
SSI Asset Management (SSIAM) and its partners have organised an online signing ceremony for agreements on setting up Vietnam Growth Investment Fund (VGIF) today.
With an estimated size of $150 million, Vietnam Growth Investment Fund focuses on investing in private enterprises in the fast-growing setors
VGIF is a member fund which is investing in private companies with the estimated size of $150 million, 10-year term, 5-year investment period, and is officially established as of October 14, 2020. With a flexible investment method, the fund’s main investment focuses are consumers goods and other sectors with high competitive advantages in Vietnam, mainly in essential industries that have many driving growth factors such as the change in demand/consumption, attractive supporting policies, and high annual growth rate including food and beverages; retail; medicine/health; electricity/energy; and water.
The VGIF's objectives focus on three main points, including companies that have competitive advantages and the potential to grow rapidly in the coming years; companies with listing potential or privatize state-owned companies with attractive valuation; listed via PIPEs, or spin-offs of listed group subsidiaries.
The two partners of SSIAM which are CTB and MIC are both big names in the international market. CTB is CP Group’s flagship investment platform and has over $10 billion investments and board participation with Ping-An, Itochu, and CITIC.
CTB has been working actively with the portfolio companies to forge a strategic partnership. Meanwhile, MIC – with the backing of the Development Bank of Japan – also possesses strong financial potential, global network, and financial investment management capacity at many markets, especially ASEAN and China. The MIC is also the leading fund management company in Japan with assets under management of about $2 billion.
The VGIF will receive support from advisors who are the most influential and reputable leaders in the Asian business world like Nguyen Duy Hung – founder and chairman of SSI Securities Corporation, Soopakij Chearavanont – chairman of CP Group, and Yang Xiaoping – senior vice chairman of CP Group and CEO of CP China and CTB.
In addition to co-investment in capital contribution, the three fund founders are SSIAM, CTB, and MIC will coordinate with each other in all aspects such as the management of fund operations, capital mobilisation, enterprise appraisal, and investment decision making. SSIAM, as the “host”, is responsible for finding, approaching, and negotiating investment opportunities in potential businesses in the Vietnamese market. Furthermore, the investment team of SSIAM will directly participate in the Board of Directors of the investee enterprises to improve management capacity and operational efficiency for the business, as well as protect investors' interests.