Excelsior Capital Vietnam Private Equity Fund

Equity : November 2020

The SDG Frontier Fund has invested EUR 2 M in Excelsior Capital Vietnam Private Equity Fund, a private-equity fund focused on Vietnam.

This is an investment by SDG Frontier Fund

Amount

€ 2,000,000.00

Type of investment

Equity

Development impacts

  • Local economic growth
  • Private sector consolidation/innovation
  • Access to basic services & goods
  • Promotion of ESG best practices

Beneficiary locations

Asia: Vietnam

Investment field

Investment Companies & Funds

Activity

SME Fund

Organisation

Excelsior Capital Vietnam Private Equity Fund

Domicile

Singapore

More investments in

Excelsior Capital Vietnam Private Equity Fund

  • Equity € 8,733,600.00 (2020)

Other investments by

SDG Frontier Fund

The Excelsior Capital Vietnam Private Equity Fund is a private-equity fund that will primarily invest in established, larger SME or mid-sized businesses incorporated in Vietnam or regional companies that have significant financial and commercial ties to Vietnam.

The Fund will invest in approximately 10 businesses that demonstrate potential for market leadership in their respective industries, produce attractive operating results, and are sufficiently scalable to facilitate an exit via a trade sale or listing.

The Fund will target sectors where the fund manager has a proven track record, including education, healthcare, industrials, clean tech, food/ agribusiness, media, as well as consumer product sectors. Moreover, Excelsior will differentiate itself from local competitors by offering both domestic and cross-border expansion to its investee companies through its deep relationships with Korean and other North Asian companies with a strong interest in Vietnam, by identifying potential strategic and exit partners.

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.

Read impact and news about this project

Greener money

News

Greener money

31-08-2021

Money is getting greener. The superlative in sustainable investing today is "impact investing". A growing global market that is already worth more than $700 billion.

Article originally appeared in MT Magazine in Dutch.

Read more
Repousser les frontières des investissements durables

News

Repousser les frontières des investissements durables

15-12-2020

An interview with Luuk Zonneveld, An-Heleen De Greef & Eric Van Den Bossche on the SDG Frontier Fund, published in Eventail on the 10th of December, written by Cédric Boitte. This article was published in French.

Read more
You'll never make the world sustainable with only public money

News

You'll never make the world sustainable with only public money

02-07-2020

Financial return is worth twice as much if it also helps the world move forward. The Belgian government and business world collect 50 million euros for sustainable investments in the African and Asian private sector. "Investing is better than giving," says driving force Alexander De Croo, Minister of Development Cooperation. "You will only see a return on your investment if it has really made a difference."

Read more
SDG Frontier Fund first closing

News

SDG Frontier Fund first closing

02-07-2020

First-of-its-kind Belgian impact fund brings together 9 private investors to support sustainable economic growth in African and Asian frontier markets.

Read more

View more of our investments in this region

Geuther Vietnam

Enterprises

Geuther Vietnam

  24,309.00

  Vietnam

  18/10/2021

  Subsidy

Lendable MSME Fintech Credit Fund

Investment Companies & Funds

Lendable MSME Fintech Credit Fund

  2,994,950.00

  India, Indonesia, Vietnam, Kenya, Nigeria, South Africa

  20/08/2021

  Equity

The Currency Exchange Fund n.v.

Financial Institutions

The Currency Exchange Fund n.v.

  7,091,000.00

  Bangladesh, Cambodia, India, Indonesia, Myanmar, Nepal, Pakistan, Philippines, Sri Lanka, Vietnam, Bolivia, Brazil, Colombia, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Paraguay, Peru, Algeria, Egypt, Iraq, Jordan, Lebanon, Morocco, Syria, Tunisia, Palestinian Territories, Benin, Burkina Faso, Burundi, Cameroon, Côte d'Ivoire, Democratic Republic of Congo, Ethiopia, Ghana, Guinea, Kenya, Madagascar, Malawi, Mali, Mozambique, Niger, Nigeria, Rwanda, Senegal, South Africa, Tanzania, Uganda, Zambia

  05/09/2007

  Equity

Kaizen Private Equity II

Investment Companies & Funds

Kaizen Private Equity II

  300,000.00

  India, Philippines, Vietnam

  08/12/2020

  Subsidy

Banh Vang Company Ltd.

Enterprises

Banh Vang Company Ltd.

  2,500,000.00

  Vietnam

  28/09/2015

  Debt

Geuther Vietnam

Enterprises

Geuther Vietnam

  2,581,446.60

  Vietnam

  10/09/2020

  Debt

Geuther Vietnam

Enterprises

Geuther Vietnam

  5,929.00

  Vietnam

  31/08/2020

  Subsidy

Geuther Vietnam

Enterprises

Geuther Vietnam

  31,044.00

  Vietnam

  10/09/2020

  Subsidy

Excelsior Capital Vietnam Private Equity Fund

Investment Companies & Funds

Excelsior Capital Vietnam Private Equity Fund

  8,733,600.00

  Vietnam

  21/01/2020

  Equity

Puratos Grand Place Vietnam

Enterprises

Puratos Grand Place Vietnam

  85,910.00

  Vietnam

  05/07/2018

  Subsidy

Puratos Grand Place Vietnam

Enterprises

Puratos Grand Place Vietnam

  1,377,750.00

  Vietnam

  25/10/2017

  Debt

Mekong Enterprise Fund

Investment Companies & Funds

Mekong Enterprise Fund

  2,117,000.00

  Cambodia, Vietnam

  26/11/2002

  Equity

Triple P SEA Financial Inclusion Fund

Investment Companies & Funds

Triple P SEA Financial Inclusion Fund

  6,640,739.00

  Cambodia, Indonesia, Philippines, Vietnam

  14/11/2017

  Equity