Mekong Enterprise Fund

The Mekong Enterprise Fund, sometimes called the "Mekong Fund", is a private equity fund focusing on well-managed private businesses in Vietnam. The Fund was launched in 2002 was was fully invested in 10 companies by the end of 2005.

The Mekong Enterprise Fund’s fair market Net Asset Value (NAV) was approximately $37 million as of 30 June 2007.

The average annual revenue growth rate for the Fund's investee companies has been 34.5% between the period in which it invested and 31 December 2006. Meanwhile, average annual net profit growth has been approximately 46.9% over the same period. Net profit has grown faster than the rate of revenues since, the average net profit margins have grown at these companies over the period that the Fund has been a shareholder. To learn more about the Fund's existing investments, please visit our Investments page.

Life of the Fund

The Fund's life is expected to be 10 years from the date of its launch on 22 April 2002. When the Fund makes an investment, it expects to hold the investment for 5 to 8 years, but it could be longer or shorter depending on the circumstances.

Differentiation from Other Funds

The Fund is unique from other investment funds looking for investments in Vietnam in the following ways:

1. The Fund invested only in private sector companies founded by local entrepreneurs instead of foreign-invested companies or privatized/equitized companies;
2. The Fund targeted a smaller average investment size than other funds, which means that the Fund invested in smaller companies;
3. The Fund provides significant levels of value-added assistance to the companies in which it invests, including helping companies make the changes necessary to prepare for successful listings;
4. The Fund had a focused investment strategy targeting mostly manufacturing and export oriented businesses;
5. The Fund aimed to only invest in companies that have strong management teams and a commitment to continuous strengthening of their management teams;
6. The Fund was very selective about the investments that it makes, preferring to make fewer investments in order to only invest in excellent companies with a high likelihood of being successful investments. As a result none of the Fund's 10 investments have failed and all have grown since the Fund's initial investment.

Fund's Legal Form

The Fund is domiciled in the Cayman Islands. The Fund is not listed on any stock exchange.