43318 - Mekong Enterprise Fund IV, L.P.

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Summary of Investment Information

Project Number

43318

Company Name

MEKONG ENTERPRISE FUND IV LP

Date SPI Disclosed

Nov 21, 2019

Country

Viet Nam

Region

East Asia and the Pacific

Projected Board Date

Jan 31, 2020

Environmental Category

FI-2 - Limited

Status

Active

Last Updated Date

Dec 20, 2022

Department

Equity Portfolio Management

Industry

Funds

Previous Events

Approved : Apr 10, 2020
Signed : Apr 15, 2020
Invested : May 29, 2020

Sector

Growth Equity Fund

Project Description

Mekong Enterprise Fund IV Limited Partnership (“the Fund”), a Cayman Islands exempted limited partnership, is a private equity (“PE”) fund seeking $200 million in capital commitments to build a portfolio of equity investments in middle market, growth-oriented companies in Vietnam.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	60.0

Development Impact

The expected development impact of the Fund includes (i) improved access to long-term, patient, risk capital for fund investees which should lead to (ii) accelerated investee growth delivered via a deliberated approach from the General Partner through collaborating with management teams and providing hands-on financial, operations, strategic and governance guidance; (iii) increased PE investment levels are expected to improve market competitiveness by small and mid-cap companies supported by good PE investors and (iv) expanded access to institutional capital in Vietnam anticipated from new institutional and private investors.

Through this investment, IFC would support a fund manager in a country where locally-managed PE capital is still scarce. IFC's investment in the Fund is expected to demonstrate confidence in the Fund Manager, catalyzing commitments from other investors. IFC is also expected to play a role in the Fund's structuring and governance, both before the Fund's first closing as well as throughout the Fund's life. IFC would also play an important role in the maintenance, improvement and evolution of the Environmental and Social Management System (ESMS) in the Fund. Finally, through potential co-investments, IFC would be able to work together with the Fund Manager to invest in deals that otherwise would be too big for the Fund to invest in by itself.

E&S Category Rationale / Risks and Mitigation

The proposed Project is an IFC equity investment into Mekong Enterprise IV Limited Partnership (the Fund). The Fund focuses primarily on consumer-driven businesses in Vietnam comprising mainly retail and restaurant chains, fast moving consumer goods, pharmaceuticals, education, healthcare services, consumer financial services and online consumer services. Most transactions are expected to be of medium risks, therefore the Project has been categorized as FI-2 according to the IFC's Sustainability Framework. The Fund will not invest in coal-related activities and is not expected to support higher E&S risk business activities that may include a) involuntary resettlement, b) risk of adverse impacts on Indigenous Peoples, c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage or d) significant Occupational Health and Safety risks. The applicable E&S performance requirements of the Project will include IFC Exclusion List, relevant host country E&S laws and regulations and IFC Performance Standards (when applicable).

In accordance with IFC's Access to Information Policy, IFC will periodically disclose the names, locations and sectors of sub-projects that have been supported by IFC investments through private equity funds, subject to regulatory constraints and market sensitivities. The sub-project(s) listed below reflect(s) the status of the portfolio as of January 1, 2025.

Investee	Country Of Investment	Sector
Entobel Holding	Viet Nam	M-IA- Medical Equipment and Supplies Manufacturing
F88 Invt Bus JSC	Viet Nam	O-HA- Microfinance and Small Business - Non Commercial Banking
Gene Solutions JSC	Viet Nam	S-AB- Medical and Diagnostic Services
HSV Group JSC	Viet Nam	Q-BZ- Other Retail
HUSK	Viet Nam	M-IA- Medical Equipment and Supplies Manufacturing
LiveSpo Global JSC	Viet Nam	M-EA- Miscellaneous Consumer Products (Including Sporting Goods and Equipment, Soap and Cleaning Materials Mixing, Packaging and Distribution, Toys, Games, Other)
Marou Int Holding Ltd	Viet Nam	F-AI- Other Food
Mutosi Group JSC	Viet Nam	M-EA- Miscellaneous Consumer Products (Including Sporting Goods and Equipment, Soap and Cleaning Materials Mixing, Packaging and Distribution, Toys, Games, Other)
Thai Nguyen International Hospit	Viet Nam	S-AA- Hospitals and Clinics

The key E&S risks of the Project are expected to associate with the Fund’s investment activities and the Fund’s capacity and systems in place to assess and manage such risks. Being an existing client of IFC, the Fund Manager has assigned necessary E&S roles and responsibilities and has developed and implemented an E&S management system (ESMS) in line with the performance standards requirements. The Fund’s Manager will be required to maintain the existing ESMS and enhance current external communications mechanism in line with the IFC requirements to screen and assess investments against the applicable E&S performance requirements.

Contacts

For Inquiries About the Project, Contact

Mekong Enterprise Fund IV Limited Partnership
Chris Freund
Partner
+84.28 3827 3161
chris@mekongcapital.com
Capital Place, 8th floor, 6 Thai Van Lung, District 1, Ho Chi Minh City, Vietnam
www.mekongcapital.com/

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CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Task Title & Description	Anticipated Completion Date
Staff E&S training	07/03/2020
Formalizing external communication mechanism	01/03/2020

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