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VinaCapital plans second Vietnam fund, targets $500m

VinaCapital, the Vietnamese asset management, banking and real estate consultancy, is putting the finishing touches on its second dedicated property fund. The fund will be fully privately funded, unlike the firm's first opportunity fund.

VinaCapital, the Ho Chi Minh City-based firm, is planning to raise up to $500 million for its second real estate fund aimed at investing in Vietnamese distressed assets, with a secondary focus on greenfield assets and real estate equities.

The firm intends to deploy 70 percent of the equity raised for Vietnam, although the remainder may be spent in Laos and Cambodia.

Don Lam, chief executive at VinaCapital, told PERE magazine that the firm was in talks with potential seed investors for the seven-year long vehicle and that a first close was anticipated before June this year.

The vehicle will be completely privately funded, unlike the firm’s first opportunity fund in which much of the funds were raised via London’s junior AIM stock market.

Lam would not comment on the target internal rate of return for the vehicle but similar themed vehicles in Vietnam have targeted a return of more than 30 percent.

To read more about the fund, see the April issue of PERE magazine.