Why did Bain Capital choose Masan for its first strategic investment in Vietnam?

On October 2, Masan announced that Bain Capital, a leading private investment firm, has agreed to invest at least $200 million of equity capital into Masan Group Corporation. The investment could be upsized to $500 million, subject to prevailing market conditions and the company’s capital needs.

The transaction is a testament to Bain Capital's trust in Vietnam's market of 100 million people, as well as Masan's position in the retail and consumer goods markets.

Starting as a manufacturing company, Masan boasts 30 factories, dozens of farms, and over 3,500 WinMart and WinMart+ stores and supermarkets. According to Masan's financial statement, WinCommerce, the owner of the WinMart and WinMart+ chain, holds half of the nation's modern retail market.

Established in the United States in 1984, Bain Capital has made more than 1,100 highly profitable investments in the fields of retail, industry, healthcare, technology, financial services, and business.

In the consumer and retail sectors, Bain's investment portfolio includes renowned retail and food and beverages chains such as Burger King, Burlington, Dunkin Brands, Samsonite, and others. As a foreign investment fund with rich experience in the consumer sector, Bain Capital has approximately $180 billion in assets under management.

Masan expects the transaction to close by the end of the year, and it continues to explore other strategic alternatives for equity capital. Previously, other global investment funds, such as KKR and TPG, also selected Masan for their first strategic investment in Vietnam.

In 2011, KKR first invested $159 million to scoop up 10 per cent of Masan Consumer, and in 2012, it made a follow-on investment of $200 million through the purchase of over 22.8 million shares via private share issuance ($100 million) and by buying shares from Masan Consumer's former shareholders ($100 million).

Following these successful investments, in 2017, KKR continued to inject $250 million in Masan Group and its branded meat platform, Masan Nutri-Science.

KKR’s investment comprised a $100 million purchase of secondary shares from PENM Partners, an independent Danish private equity company, and a $150 million primary investment in Masan Nutri-Science for a 7.5 per cent stake.

The fastest growing consumer market in Southeast Asia

Vietnam's consumer sector has the highest growth rate in Southeast Asia, forecasted at 7.7 per cent annually between 2022 and 2040. This is underpinned by increasing urbanisation and an exploding consumer class that boasts more disposable income, leading to evolving demands that extend beyond meeting basic needs.

Danny Le, CEO of Masan Group, commented on the transaction, "In the face of the challenging consumer environment, we have continued to invest in our platform and breakthrough innovations to position ourselves for the consumption upswing."

Barnaby Lyons, a partner at Bain Capital said, "We believe that Masan has the right fundamentals, reach, and growth strategy to succeed in this compelling consumer market. It is one of the most trusted brands in Vietnam, with significant reach, the ability to anticipate consumer tastes, and the drive to build out an innovative product pipeline to meet those needs."

In the first half of the year, Masan's business results remained positive despite the challenging macro environment. Its net revenue reached VND37.3 trillion ($1.57 billion) in H1, an increase of 3.6 per cent on-year.

Despite weakened consumer sentiment affecting sales, WinCommerce’s revenue recorded on-year growth of 1.5 per cent in H1. Meanwhile, Masan Consumer Corporation increased its top line by 11.6 per cent on-year, and Masan MEATLife's revenue increased to VND3.3 trillion ($139.27 million), up 70.2 per cent on-year.

At the centre of Masan's platform is WIN Membership – a platform that connects brands and consumers, which has reached seven million members. It is targeted to hit 10 million by year-end and 30 million by 2025.

The WIN Membership platform allows Masan to provide more targeted products and services to better serve Vietnamese consumers, acting as the critical growth engine for the company's businesses.

Masan brand reinforced with prestigious accolades Since 2022, Masan has consistently advanced its strategic initiatives across the business spectrum, further cementing its solid position. Its dedicated efforts have garnered recognition both domestically and internationally.

Masan Group receives recognition at 'Vietnam’s 50 Best Performing Companies' On September 16, Masan Group achieved distinction in two notable categories namely “Vietnam’s 50 Best Performing Companies” and "Billion Dollar Enterprise 2023," as recognised by Nhip Cau Dau Tu magazine.

Bain Capital leads Masan Group's equity funding round Bain Capital, a leading private investment firm with approximately $180 billion of assets under management, has agreed to invest at least $200 million of equity capital into Masan Group Corporation (HSX: MSN).