$112 million fund to focus on consumer-driven businesses.
Mekong Capital has announced the final closing of subscriptions for its fourth fund, the $112 million Mekong Enterprise Fund III Limited Partnership (MEF III).
The primary investment objective of MEF III is to achieve a high internal rate of return by investing in Vietnamese consumer-driven businesses such as retail, restaurants, consumer products, and consumer services. It may also invest in companies involved in the convergence between online and offline, especially in the retail space.
MEF III applies Mekong Capital’s proven approach towards adding value as a shareholder, which is based on the Vision Driven Investing Framework and Mekong Capital’s extensive network of international experts and resources.
The fund will typically target investments ranging from $8-15 million and can make both minority and buy-out investments.
MEF III has a ten-year life and expects to make a total of approximately 12 investments during the first three years of operations.
With its team of more than 25 people in Vietnam, Mekong Capital commits substantial time and resources to adding value to the companies in which its funds invest, and this has played an important role in the success of many of Mekong Capital’s past investments.
Its current and past investee companies are typically among the fastest growing and market leading companies in Vietnam, for example MobileWorld, Phu Nhuan Jewelry, Traphaco, Golden Gate, Masan Consumer, and ICP.