Excelsior Capital Vietnam Private Equity Fund

Development impacts

• Local economic growth

  The Fund will provide capital and operating support to well-established SMEs and medium-sized businesses ensuring the continued growth of these companies.

  The Fund will support job creation in formalized companies. According to the Fund Manager assumptions, employees from companies in the current investment pipeline will likely increase from approximately 1.000 employees to approximately 3.000 over 5 years.

  The Fund is expected to create “more”, but also “better” jobs, and the fund manager is also expected to encourage the upskilling and training of employees.

• Private sector consolidation/innovation

  With relatively few PE funds active in the country, there is a limited supply of institutional private capital for SMEs in Vietnam (especially in this ticket range). The Fund is expected to service the important untapped market demand for stable and long-term capital from small- and medium-sized companies, as conditions governing access to credit are still strict and short-term loans are still strongly favoured by local banking institutions.

  By joining the Fund, BIO will support the creation of a new Vietnam-based PE Team and strengthen the relatively limited PE industry in the country.

  Excelsior’s cross-border strategy and relationships with North Asian partners is expected to play an important role in bringing in foreign capital and advanced technologies, creating positive spillover effects for the local economy. The strategy would allow Vietnamese companies to further integrate in more sophisticated North Asian supply chains, as well as diversify their end-markets.

• Access to basic services & goods

  While the fund is sector agnostic, the most active pipeline deals are in BIO’s priority sectors, such as education and healthcare. In most cases, the services and products provided would be reliable, affordable for the middle-class population and would tend to be of higher quality with respect to local standards.

• Promotion of ESG best practices

  The Excelsior Group is committed to promote ESG best practices and has received the support of BIO, FMO and Obviam in this respect. The Team is expected to strongly improve the professionalization of its investees, such as improving labour conditions by requiring the formalization of jobs, as well as encouraging the upskilling and training of employees, particularly on E&S matters.