Vintage
2002
Status
Wound-up
Size
US$18.5 million
Seeing the opportunity to set up the first fund in Vietnam to focus uniquely on investing in private companies, Mekong Capital launched the Mekong Enterprise Fund (MEF) in 2002 at US$18.5 million in committed capital.
MEF was fully invested in 10 companies by the end of 2005. These tended to be export-oriented manufacturing companies that were family-owned.
We tried hard but typically failed to add much value to these companies. However the lessons learned in this fund paved the way for the much more successful Mekong Enterprise Fund II.
MEF is no longer active. The Fund completed its winding-up procedures and ultimately returned approximately 100% of the value of its original capital to shareholders, which was far under our expectations.
In October 2011, Mekong Enterprise Fund divested 100% of its investment in AA Corporation to an investment fund. In recent years, AA built up their senior management team, expanded its customer base significantly in the Middle East, and delivered increasingly strong financial performance. The Fund originally invested in AA in March 2003 and held the investment for more than 8 years.
In August 2009, Mekong Enterprise Fund has completed the sales of its shares in Tan Dai Hung Plastics Joint Stock Company. The Fund originally invested in Tan Dai Hung in March 2003, which was the Fund’s first investment. We have worked with them to prepare for a successful listing in November 2007.
In April 2012, Mekong Capital completed the sale of all of Mekong Enterprise Fund’s shares in Lac Viet Computing Corporation, a leading IT services provider for small and medium sized companies in Vietnam. The Fund originally invested in Lac Viet in July 2003.
In October 2013, Mekong Capital completed the sale of all of Mekong Enterprise Fund and Mekong Enterprise Fund II’s shares in Ngo Han, Vietnam’s leading magnet wire producer. Mekong’s Funds originally invested in Ngo Han in April 2004.
In August 2012, Mekong Capital completed the sale of all of Mekong Enterprise Fund’s shares in Nam Hoa Production and Trading Corporation, a leading Vietnamese manufacturer of wooden toys intended for children aged between 1 to 10 years old. The Fund originally invested in Nam Hoa in June 2004.
In February 2011, Mekong Capital completed the divestment of Mekong Enterprise Fund’s entire position in Minh Phuc Printing and Packaging Company (“Minh Phuc”) to a Vietnamese strategic investor. The Fund originally invested in Minh Phuc in November 2004.
In Aug 2009, Mekong Capital has completed the sale of Mekong Enterprise Fund’s investment in Duc Thanh Wood Processing Joint Stock Company (“Duc Thanh”) to a Vietnamese strategic investor. The Fund originally invested in Duc Thanh in February 2005.
In September 2018, Mekong Enterprise Fund completed the sale of all of its shares in Minh Hoang, one of Vietnam’s leading producers of sports apparel, active-wear and outerwear, supplying some of the top brands worldwide. The Fund originally invested in Minh Hoang in March 2005.
In December 2008, Mekong Enterprise Fund sold its stake in Saigon Gas to the French oil and gas giant, Total Group, who acquired 100% of the company concurrently. This was Mekong Capital’s first divestment. Foreseeing the consolidation trend in Vietnam’s LPG market and understanding the industry dynamics, we worked closely with the company to make it attractive to strategic buyers, focusing on its distribution network, strong brand, and transparency in financial reporting. As a result, MEF managed to complete the exit at attractive valuations, even in the midst of a global financial crisis.
In 2012, Mekong Capital has completed the sale of Mekong Enterprise Fund’s investment in Goldsun Joint Stock Company. The Fund originally invested in Goldsun in December 2005.
