Perspective: First Half 2013 Private Equity Investment in Vietnam Sets a Record

Posted on July 13, 2013

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What we have been seeing in terms of activity in the private equity sector in Vietnam seems to be confirmed in the just released report by Private Equity international (July 12, 2013).

PEI reports that “Private equity investment in Vietnam hit $535 million in the first half of 2013, a record first half amount that already exceeds the full year totals for the last four years. To June 30, two outsized deals accounted for the bulk of the investment: a $200 top-up investment in Masan Consumer from Kohlberg Kravis Roberts and a $200 million buyout of real estate group Vincom Retail by a Warburg Pincus-led group.”

Market domination by a few large deals signals more a possibility for international private equity participation in Vietnam than it does a trend by itself. Confirmation would require the pickup in broader range of deals as well.

The careful, on the ground, deal prep work that my team undertakes in connection with emerging markets private equity investments, and really all manner of corporate and financial transactions, in Vietnam is crucial to their success, but also is time-consuming and sometimes leads to the realization that a deal cannot be done as proposed or at all.

Due diligence is always and everywhere paramount.  The due diligence process, however, done properly is by its nature slower in Vietnam and other less developed markets than in more developed markets meaning that a deal pipeline takes time to build and more time to vet and to structure the investment.

Vincom Center

Vincom Center