Mekong Capital’s Investee Companies Achieved High Growth

OnApril 19, 2010, Mekong Capital announced the impressive performance for the year ending 31 December 2009 of the 21 investee companies of three funds managed by the Company. Despite the global financial crisis in 2009, Mekong Capital’s investee companies, as a group, achieved 103% net profit growth compared to 2008 levels. Performance was strong across all three funds as the net profit growth was broad-based across the 21 investee companies, with median net profit growth of 75%.

Companies in consumer facing businesses such as retail, restaurants, food and consumer products performed especially well. Meanwhile, many companies with manufacturing operations substantially improved their efficiency, leading to greater net profit margins.

Below are some examples of companies that demonstrated sustainable growth throughout the global crisis. These companies grew continuously as the result of actions taken by their management teams, supported and empowered by Mekong Capital:

· Digiworld: Digiworld’s net profit grew by 366% in 2009, the result of a successful reorganization around the company’s key profit centers.

· An Giang Plant Protection: An Giang Plant Protection achieved 125% net profit growth in 2009. This was the result of strengthening the sales team and the sales network. This led to greater sales volumes and greater market share in the crop protection market.

· Masan Food: Masan Food achieved 75% net profit growth in 2009, driven by their strong management team and their successful expansion into instant noodles, with the Omachiand Tien Vua brands.

Mr. Chris Freund, Managing Partner of Mekong Capital said: “The extraordinary net profit growth in 2009 contributed to substantial improvements in the Internal Rates of Return (IRR) of all three funds in 2009. We are committed to continuing to empower our investee companies to set high targets and achieve those, which will lead to strong returns for each of our funds”.

Mekong Capital is a Vietnam-focused Private Equity firm, founded in 2001, and which focuses on growth equity in Vietnamese companies. Mekong Capital has 3 existing funds under management, a team of 30+ full time people in Ho Chi Minh City and Hanoi, more than 20 completed Private Equity investments, and a track record of strong growth at its investee companies.

Mekong Capital creates shareholder value by investing in well managed companies, and working closely with them to continuously build their management, leadership and corporate culture in a way that leads to long term growth and value creation and successful exits.

Many of Mekong Capital’s investee companies are the fastest growing and market leading companies in their fields in Vietnam.

Tags: Mekong Capital, Vietnam enterprises