SSIAM raised $100 million for new Daiwa-SSIAM III

Daiwa-SSIAM III will invest in a flexible mandate targeting equity upsides, supported through a significant minority ownership position (10-30 per cent stake in each investee company)

DAIWA-SSIAM III is a private equity (PE) fund which invests primarily in a number of private and non-listed companies in Vietnam. Daiwa-SSIAM III targets a corpus size of $100 million, 10-year term, 5-year investment period, and has officially completed the initial closing as of October 2020.

In 2020, SSIAM continually launched new funds such as the two exchange-traded funds (SSIAM VNFINLEAD ETF and SSIAM VN30 ETF) and two private equity funds (SSIAM-DBJ-CP Vietnam Growth Investment Fund and Daiwa-SSIAM III).

Daiwa Securities Group is a strategic shareholder of SSI Securities Corporation (SSI) and has been cooperating with SSI in many activities. Daiwa-SSIAM III marks the third partnership between the two institutions’ investment subsidiaries, namely SSIAM and DCI.

Previously, in October 2009, the parties established the DSCAP-SSIAM Vietnam Investment Growth Fund with corpus size of around $28 million. DSCAP-SSIAM has successfully divested from all five investee companies and recorded a profit of 2.8 times or gross IRR of 38 per cent on the principal of investments over the 5-year holding period.

In July 2015, SSIAM and DCI continued to launch the DAIWA-SSIAM Vietnam Growth Fund II with corpus size of about $40 million. DAIWA-SSIAM invests in seven investee companies and is currently in the post-investment and divestment phase.

According to SSIAM, Vietnam has consistently been one of the fastest-growing economies in the world and the region’s top FDI destination. Healthy twin account surpluses with increasing foreign exchange reserves, improving the local banking sector with stable interest rate and inflation, provide Vietnam macroeconomic stability and a stronger local currency. Extremely fast urbanisation process, growing middle class, and increasing disposable income are expected to drive strong growth in consumer-related industries.

While at the same time, local enterprises are benefiting from global export opportunities, thanks to many strategic free trade agreements in place such as the EVFTA. Resilient and improving business environments, helped by the highly effective containment of COVID-19 and strong internal growth engines, further boost Vietnam's unique competitiveness appeal.