PENM Partners bullish on Vietnam and Masan

PENM Partners deputy managing director Lars Kjaer said he was excited about consumer businesses in Vietnam where the fund management company had much success in food and beverage related investments, such as with Masan.

“Besides looking at solid business fundamentals, we believe in investing in entrepreneurs who have vision and value partnerships. In an emerging market such as Vietnam, you are investing in not only the business, but also the people with transformational ideas that you can continue investing in and supporting,” he explained.

“A great example is Masan Group, where we first invested in the food business, then the group’s pre-IPO, and most recently, Masan Resources. It’s a very scalable approach that both manages risks and open doors to more opportunities with people you already can trust,” he said, adding that PENM Partners was also in discussion to partner with Hoa Phat on new opportunities.

PENM Partners sees investment in Masan Group as a great example

PENM Partners has one of Vietnam’s best private equity track records in the country. Their funds, including funds formerly managed by BankInvest and now directly managed by PENM Partners, have pioneered in dozens of value-accretive investments. Their portfolio in Vietnam includes early stage investments in blue chips such as Hoa Phat Group (HPG), PetroVietnam Drilling (PVD) and Masan Group Corporation (MSN).

“We will continue to remain a big shareholder in strong companies such as Masan Group, as we has faith in its strategy, leadership and renewed focus on consumer related opportunities. More importantly, a lot of Masan’s initiatives and investments are only starting to show results, which is why we see additional benefit from remaining a major shareholder,” said Kjaer. “This explains why, at the AGM in April this year, I took a seat in the Board of Directors for another five year term.”

Given Vietnam’s “very promising” demographic trends, where a young population and growing middle class are spending more on brands and better services, Kjaer said companies such as Masan were well-positioned to take advantage of this trend. With 3 funds in Vietnam under management and the 3^rd fund almost fully invested, PENM Partners hopes to raise more funds in future to increase its investments in consumption-oriented businesses.

Previously, BankInvest had been active in investing in Vietnamese companies of high potential over the past eight years. In 2013, the former management team and investment professionals of BankInvest’s Vietnam’s business established a new fund management company called PENM Partners.

“As part of the founding of PENM Partners, the Vietnam-focused funds, previously managed by BankInvest, were also transferred under PENM Partner’s management,” said Kjaer.