Brief about Vietnam Azalea Fund

Vietnam Azalea Fund (VAF) is a $100 million fund, which was launched in June 2007. VAF leverages Mekong Capital’s on-the-ground presence in Vietnam and investment experience by investing primarily in pre-listed equitized (privatized) companies in Vietnam, especially companies in the early stages of privatization. This investment strategy makes VAF different from Mekong Capital’s other funds, Mekong Enterprise Fund and Mekong Enterprise Fund II, which focus primarily on private companies, which were never under state ownership.

VAF aims to invest mainly in companies 12-24 months prior to the expected listing dates.

 

Life of the Fund

The expected life of the Fund is 10 years from June 2007; however it could be longer depending on the decision of the shareholders of the Fund. When the Fund makes an investment, it expects to hold the investment for 2 to 4 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 invests mainly on former state-owned companies at the early stages of privatization, in other words, the Fund provides a pure play in privatization in Vietnam;
  2.  The Fund targets mid-size privatized companies;
  3.  The Fund aims to invest mainly in companies 12- 24 months prior to the expected listing dates;
  4.  The Fund provides some value-added assistance to the companies in which it invests, including helping companies prepare for successful listings;
  5.  The Fund aims to only invest in companies that have ambitious and proactive management teams and a commitment to developing a strong management team;
  6.  The Fund is 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.
 

Fund's Legal Form

The Fund is domiciled in the Cayman Islands. The Fund is expected to be listed when it is fully invested.

 
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