4th November 2020
DCI Vietnam Fund III Management Co., Ltd.
Daiwa Corporate Investment Co., Ltd.

Establishment of “DAIWA-SSIAM Vietnam Growth Fund III L.P.”
Daiwa Corporate Investment Co., Ltd. (“DCI”), through its subsidiaries, DCI Vietnam
Fund III Management Co., Ltd. and SSI Securities group, the largest securities company
in Vietnam), are pleased to announce the establishment of "DAIWA-SSIAM Vietnam
Growth fund III LP" (the “Fund 3").
The Fund 3 has already started its investment activities taking the opportunity ofVietnam’s strong economic re-emergence and immense growth potential over the next
decades. The Fund 3 aims to provide growth capital as well as active hands-on supports
to fast-growing companies in Vietnam to achieve higher return on investment byincreasing the corporate value of the portfolio companies. The Fund III is continuing to
be open for further capital commitment and the expected final closing date is scheduled
for October 2021.
1. Executives Summary
In October 2009, DCI and SSI Securities group have already jointly established their first
Vietnam-dedicated private equity fund (the “Fund I”) with committed capital of circa
US$ 28 million (including the parallel fund) and the Fund I had successfully completed
divestments of all of 5 (five) portfolio companies and made its final distribution to its
limited partners with a positive result of investment performance. The two co-partners
are currently managing DAIWA-SSIAM Vietnam Growth Fund II L.P. (the “Fund 2”), a2015-2023 vintage Vietnam-only private equity fund with committed capital of circa
US$ 39 million (including the parallel fund). The Fund 2 is fully disbursed into seven (7)best-in-class enterprises already.
Vietnam’s population in 2019 stands at just short of 100 million and is the world’s 15thlargest. Over 70% of the entire population is within 15 to 64 years old, a so-called golden
population structure. Since 2011, GDP resiliently grew at around 5.2% to 5.6% during
2012-2014, and averaging to over 6.4% in 2015-2018 while inflation has been stable atless than 3% per annum. By end of 2019, Vietnam GDP grew 7.02%, the highest
recorded figure in 9 years. Given that policymakers are steadfast focusing on longer termeconomic stability and sustainability, the prospects of Vietnam economy are clearly
positive and Vietnam is expected to continue its sustainable high economic growth driven
by expansion of domestic consumption along with rising middle income class and thesurge of the importance as a destination for foreign direct investment and favorable
export condition.
Since Vietnam is expected to continue providing attractive investment opportunities, DCIand SSI Asset Management Co., Ltd. (a subsidiary of SSI Securities) decided to establish
the successor fund of the Fund 2.
2.

Investment Strategy and Methodology

The Fund 3 intends to focus on investing into a sector where strong growth is expected
driven by attractive demographics, rapid urbanization, rising middle income class andchanges in life style. One of its reprehensive is the Consumer Goods / Services sectors
and among them, Food & Beverage, Pharmaceutical & Healthcare, and Housing
Materials & Household Goods, Transportation & Logistics, Retails, Media and Education
will expected to continuing to grow rapidly. The Fund 3 also considered a promising
investment opportunities in the Government’s SOE (state-owned enterprise) privatization
program.
The Fund 3 will focus on targeted investment size of US$ 5-10 million per transaction. Inorder to secure a meaningful influence on the corporate governance of each investee
company, the Fund 3 intends to make a significant minority investment with an ownershipof between 10% to 30% and seats on the board of directors and/or the board ofsupervisors of each investee companies. The Fund 3 will further utilize strong corporate
network of the Daiwa Securities Group with Japanese companies in order to boost theportfolio companies’ value by facilitating strategic alliances between them.

3.

Fund Scheme＜Vietnam Offshore＞＜Vietnam Onshore＞

Japanese
Investors

Business Collaboration
Vietnamese
Investors

Daiwa Corporate Investment（Inc. HCM Rep Office）

Send
Committee
Members

SSI Securities
Investment
Advice100％
Subsidiary

SSI Asset
Management

Overseas Investors（other thanVietnam）

Investment
AdviceInvestment
Committee

100％
Subsidiary

DCI Vietnam Fund III
Management

Send
Committee
Members

Management/Fee

Management/Fee

Vietnam Trust

DAIWA-SSIAM Vietnam Growth Fund III L.P.

Portfolio Companies

Summary of the Fund 3Name

DAIWA-SSIAM Vietnam Growth Fund III L.P.

General Partner（GP）

DCI Vietnam Fund III Management Co., Ltd.

Fund Maturity

10 YearsInvestment Period

5 Years

Summary of General Partner
Name

DCI Vietnam Fund III Management Co., Ltd.

Establishment

8th September 2020

Domicile

Caymans Islands

Shareholder

Daiwa Corporate Investment Co., Ltd. (100% ownership)

Representative

Kenichi Shimomoto

Summary of Daiwa Corporate Investment Co., Ltd.
Name

Daiwa Corporate Investment Co., Ltd.

Foundation

August 1982

CapitalJPY 100 million

Head office

1-9-1, Marunouchi, Chiyoda-ku, Tokyo, Japan

Share holder

Daiwa Securities Group Inc. (100%）

Representative Director Kiyohisa Hirano& President
3.

Contact
Daiwa Corporate Investment Co., Ltd.
+81-3-5555-6300