Specializing in making deals of several hundred million USD, investing 2 billion USD in a series of leading enterprises in Vietnam
On the morning of May 15, Prime Minister Pham Minh Chinh received Mr. Charles Kaye, General Director of Warburg Pincus. According to a report from the Government Newspaper, at the meeting, leaders of Warburg Pincus Group expressed interest in the policy of limiting foreign investors’ ownership in Vietnam’s banking sector; discussing plans to expand investment in real estate in Vietnam; and some difficulties and obstacles when implementing projects, including Ho Tram project.
At the meeting, Prime Minister Pham Minh Chinh suggested that the Group continue to expand its investment in Vietnam and with a large network of customers around the world will be a bridge to bring US investors in particular and Foreign investors generally come to invest in Vietnam.
Warburg Pincus is a leading global private equity firm focused on growth investing, headquartered in New York with over 200 investment professionals in 14 offices in 10 countries .
Since its founding, Warburg Pincus has raised 19 private equity funds and invested more than $94 billion in more than 940 companies in more than 40 countries. Today, the Fund manages more than $64 billion in private equity assets, with an active portfolio of more than 205 companies in a variety of sectors, including real estate, financial services, consumer technology, …
Information from the Government Portal said that since 2013, the Fund has invested nearly 2 billion USD to help build and develop leading companies in Vietnam, joint ventures with Vingroup, VinaCapital, Techcombank, Becamex , MoMo e-wallet…;
Invest $300 million in Vincom Retail
Warburg Pincus’ first big deal in Vietnam took place in 2013 when it poured $200 million to buy a 20% stake in Vincom Retail (VRE). By 2015, Warburg Pincus had invested another 100 million USD, bringing the total investment value in VRE up to 300 million USD.
When Vincom Retail listed in 2017, Warburg Pincus divested part of its capital, earning $470 million, and divested the rest in 2019, earning an additional $80 million, according to Bloomberg estimates.
Invest $300 million in Lodgis – a joint venture with VinaCapital and Mr. Don Lam
Another major investment of Warburg Pincus in Vietnam market after the VRE deal was the $300 million deal with VinaCapital in 2016. Warburg Pincus, together with VinaCapital and Mr. Don Lam, CEO of VinaCapital, reached an agreement to establish the company. a joint venture specializing in hotel investment and management in Vietnam and will gradually expand to Southeast Asia. Investors commit to contribute capital of at least 300 million USD to the joint venture.
One of the investments of this joint venture is a 100% stake in the hotel management company Serenity Holding as well as a number of hotels and resorts in Vietnam. Serenity Holding is co-owned by Mr. Don Lam and Mr. Marco van Aggele. Brands under the Serenity system include Fusion Resorts, Fusion Suites, Alma Resorts, À La Carte Living.
Lodgis purchased a 50% stake in Metropole Hanoi Hotel from the VOF fund managed by VinaCapital for about USD 100 million and then continued to acquire Ho Tram Project Company (100% capital) – the company owns the project. The Grand Ho Tram project in Ba Ria Vung Tau. Ho Tram Project Company is actively developing The Grand Ho Tram Strip with the latest project, Ixora Ho Tram.
Joint venture with Becamex IDC to develop industrial real estate
In 2018, Warburg Pincus cooperated with Becamex IDC to establish a joint venture with capital of more than 200 million USD to develop logistics chain and industrial real estate in Vietnam called BW Industrial Development JSC. The joint venture will focus on developing and operating ready-made and custom-built warehouses and factories in key economic and industrial zones in Vietnam and building industrial-related real estate. such as research centers, shared offices, and data centers.
At the time of establishment, BW had a charter capital of 2,564 billion VND, with the structure contributed 30% by Becamex and the remaining 70% by Warburg Pincus. BW then increased its capital to VND 4,917 billion and VND 8,678 billion, with the ownership ratio unchanged. In 2020, BW recorded a net revenue of VND 1,110 billion and profit after tax of VND 504 billion.
Invest $370 million in Techcombank and contribute capital to Momo
Also in 2018, Warburg Pincus attracted attention when investing more than $ 370 million to hold 8% of Techcombank shares. This investment remains in place to this day.
After that, the fund continued to invest in Momo through two rounds of funding Series C and Series D, the investment amount is not public.
By the Series E round, Momo received an investment of about $200 million from global investors including Mizuho, Ward Ferry, Goodwater Capital and Kora Management. The company representative confirmed that the value of MoMo has exceeded 2 billion USD, becoming one of the technology unicorns of Vietnam.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
