Danish private equity company Penm Partners is seeing a sluggish fundraising process for its fifth fund as the firm encountered choppy waters due to the COVID-19 outbreak.
Penm Partners hopes to raise $150 million for its PENM V fund – the same amount as for its previous investment vehicle. However, the COVID-19 pandemic poses significant challenges for the firm to meet its expectations on time.
"We were supposed to raise the funds by the middle of this year, but the coronavirus has caused a lot of uncertainties. So the end of this year or early next year would be more realistic," said managing partner Hans Christian Jacobsen to DealStreetAsia. "In Europe, China, and Vietnam, investors are putting on hold to see how it will play out.”
|Penm Partners has invested in Hoa Phat Group, Masan Group, and GTN Foods, among others |
On the other hand, the local investment landscape is predicted to normalise within three to six months, given that the country has not been impeded as much as China or Italy, Jacobsen said.
Penm Partners’ fifth fund will look to increase stakes in its existing portfolio. Jacobsen also believed that PENM IV could still make two or three more investments.
When it comes to new deals, Jacobsen noted that valuations remain unrealistic. Furthermore, many companies have seen sales down by as much as 60 per cent amidst global uncertainties.
Penm Partners has poured cash in a series of stocks, targeting manufacturing, agriculture, food, retail, and services. Some of its notable investments include Hoa Phat Group, Masan Group, GTN Foods, Loc Troi, Taseco Airs, and International Consumer Product.