The private equity business of Vietnam-based Asia Business Builders (ABB) has closed its second fund with $70 million in capital commitment, lower than its initial target of $100 million.
Asia Business Builders II LP attracted new limited partners, including Dutch development bank FMO, Pavilion Capital, the International Finance Corporation (IFC), Australian Development Investments, and several family offices, according to a statement.
ABB’s first fund closed at $20 million in 2018 and has been fully invested. The vehicle has also made several exits, such as DTP Education Solutions (sold to Japanese education company Gakken Holdings), and Trung Son Pharma (sold to South Korea’s Dongwha Pharmaceutical).
ABB II planned to invest in 8-10 additional companies, the company said. It has recently funded education company Kyna English and integrated pharmacy firm Duoc Vuong Group (King Pharma).
An ABB executive told DealStreetAsia that the second vehicle is expected to complete three to four more transactions by the end of Q1 2025.
ABB said its funds seek to generate returns particularly through investing in gender-balanced, high-impact, and high-growth small and mid-sized enterprises in Vietnam.
“The entire team is excited to mark the 2024 year-end with the final close of ABB II and to increase the value of our total assets under management and distributions to approximately $100 million. I believe we have a winning model for generating private equity returns and creating development impact in Vietnam and beyond,” said Peter Sorensen, Managing Partner of ABB.
ABB also runs an advisory business. The merchant banking team was formed in 2013, and the PE arm was then launched after the firm closed over $200 million worth of strategic M&A transactions in Vietnam. To date, it has orchestrated investment and advisory transactions exceeding $500 million.
In December, Excelsior Capital Vietnam Partners also secured $100 million for the first close of its second private equity fund, which is half of the fund’s target.
