Two management firms collaborate for new fund

“The fund will invest in real estate, private pre-IPO companies and listed companies based in Vietnam,” said Nguyen Thi Mai Thanh, chairwoman and CEO of REE Corporation, the major shareholder of RNG Invest, a local fund management company.

Thanh said SAM and RNG planned to invite a special group of investors and advisors into this fund which will comprise top industry executives and domain expert investors in Vietnam and abroad.

Speaking at a briefing before the partnership signing ceremony in HCMC on Wednesday, Thanh said RNG Invest planned to launch and raise a local fund worth USD50 million, targeting local companies and investors who are experts in property, infrastructure and household products.

“We see opportunities abound as the Vietnamese economy is recovering from the global financial crisis,” Thanh said. “We also realize that alliances with influential companies will allow a greater number of attractive investment targets as well as access to domain experts in broad industries.”

SAM will be calling for funds from strategic foreign investors who would like to invest long term in Vietnam.

Louis Nguyen, chairman and CEO of SAM, manager of the new offshore fund, said SAM and RNG would meet with selected investors in North America, Europe and Asia early next year to call for investment capital. “Foreign investors remain interested in the great performance of the Vietnam index and the phenomenal long term growth of the country.”

Nguyen, however, noted that access to quality deal flow and consistent return performance remained challenging issues, but that an exiting road ahead existed for the fund management company.

The new fund promoters say that smart people together breed fruitful ideas and that it is time for this concept to work for Vietnam through a structured format that will not only benefit investors but align the country in a more globally competitive manner.

Thanh of REE said necessary procedures were under way to run the new fund in the next six months and the initial target was USD100 million.

Established in 2008, RNG Invest is currently advising REE Corporation in managing a portfolio of approximately USD100 million and will be the sub-investment advisor for the new offshore fund.

Established in 2007, SAM is managing two investment funds with over USD125 million, featuring equity and property.