Vietcombank increases fund size almost tenfold

Vietcombank Fund Management, a joint-venture between Bank for Foreign Trade of Vietnam and Singapore-based Viet Capital Holding, has raised $120 million for a second fund, one year after it closed its maiden fund on $12.5 million.

Vietcombank Fund Management, a Vietnamese investment fund manager and financial consultant, has raised $120 million from fifty investors, mostly institutional, for ‘Vietcombank Partners Fund 2’ according to Nguyen Dinh Bui, executive director of Viet Capital, one of the fund’s backers.

Vietcombank Fund Management is a joint venture between the Bank for Foreign Trade of Vietnam and Singapore-based Viet Capital Holding.

The size of the latest fund marks a sharp increase $12.5 million raised for Fund 1, which is fully invested in unlisted companies, according to Thanhnien News, a local daily. Vu Viet Ngoan, general director of Vietcombank said regional and global financial institutions committed to the fund.

The new fund will invest in pre-IPO opportunities and the privatisations of large public companies in Vietnam across sectors spanning oil and gas, banking, insurance, information technology and telecommunications. According to Thanhnien, a small portion of the fund will be invested in listed companies.

Vietcombank Fund Management has an agreement with AIM-listed London Asia Capital, a merchant bank which manages a China-focused fund, to set up a separate Vietnam fund.