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VietNamNews

US equity firm eyes VN opportunities

Update: March, 22/2013 - 10:28

HA NOI (VNS)— TPG Growth, a member of US private equity investment firm  said it was looking for further investment opportunities in Viet Nam, with the market poised for substantial growth.

Finishing the firm's two-day annual limited partner meeting in Ha Noi yesterday, TPG Growth founder and managing partner William McGlashan highlighted Viet Nam's potential to his company's investors from around the world.

This is the first time TPG Growth has held its annual meeting abroad and Ha Noi was selected to be the venue.

"We chose Viet Nam because we have a very successful history investing here with FPT [software developer] and Masan Group [private sector group]," McGlashan said.

He added that Viet Nam was an interesting country for investors, with a young consumer population and reforms taking place in the financial sector and state-owned enterprises.

"We did a survey of our investors and Viet Nam was a country that they were all interested in understanding," he added.

Unlike country funds, TPG Growth allocates its portfolios to companies. "For us what really matters is whether we can find companies with potential to become bigger, more valuable and more productive, and Masan is an example."

According to the investment fund founder, a good company was one positioned to take advantage of the macro context.

After divesting from FPT, the US-based firm has maintained its investment in Masan since 2009 and is eager to invest elsewhere in Viet Nam.

When considering an investment opportunity, he looked at two criteria: the quality of corporate management and the economic sector the company is operating in, McGlashan said.

"I think the Vietnamese market is looking substantially better today," he said.

TPG Growth manages US$4 billion in capital, focusing on middle markets and growth equity. In October 2006, it purchased stake in FPT for $21.5 million. However, the partnership ended the following year. The transaction with Masan in 2009, valued at up to $35 million, was the largest private equity deal at that time.

Meanwhile, Masan Group is a Viet Nam's premier private sector group, whose subsidiary Masan Consumer recently received $200 million from investment firm Kohlberg Kravis Roberts. — VNS


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