The Swiss Investment Fund for Emerging Markets (SIFEM) said it has committed $20 million to Excelsior Capital Vietnam Partners’ (ECVP) $200 million second fund.
SIFEM had earlier made a $12 million commitment to the Vietnam-based growth equity firm’s first fund in 2019.
ECVP II plans to invest in 10 to 12 mid-sized companies in Vietnam across the healthcare, consumer, education, and technology sectors, according to SIFEM. Investments will be made through active minority ownership stakes in the form of equity or quasi-equity.
“Excelsior II will contribute to the creation and support of quality jobs, promote women’s participation in the formal economy, and benefit from opportunities created by the expansion of Vietnam’s middle class, underpinned by the country’s resilient economy, political reform and proactive business policies,” SIFEM said.
ECVP II is also aligned with the 2X Challenge framework, an initiative that aims to mobilise private and public capital to gender-lens investing in developing countries.
“The fund manager has been a good and responsive partner to DFIs (development finance institutions) and has been attentive to inputs and recommendations,” SIFEM added.
DealStreetAsia reported in December 2024 that ECVP secured a first close of about $100 million for its second vehicle from both existing and new limited partners (LPs). SIFEM said its investment is expected to contribute to achieving the fund’s second closing.
Some of the LPs in ECVP’s first fund include the Development Bank of Japan, FMO, the Belgian Investment Company for Developing Countries’s SDG Frontier Fund, and Norfund.
This year, ECVP has invested in at least three companies, including technology outsourcing company Sota Tek, food processor LCFoods, and restaurant operator Aladdin.
Despite a tougher fundraising environment, Vietnam has seen a spate of managers trying to raise their debut funds, such as 20in20 Partners, Thien Viet Securities, and NextBold Capital. Meanwhile, Mekong Capital, an established general partner in the country, is raising its maiden climate fund.
At the same time, DFIs remain committed to emerging market funds despite the challenges. In addition to ECVP, SIFEM also recently backed Somerset Indus Healthcare India Fund III, Navis Capital’s inaugural private credit fund, and Apis Growth Markets Fund III.
Another active allocator is FMO, which has committed capital to Pentagreen Capital’s Green Investment Partnership, Clime Capital, and Lendable Decarbonisation Fund.
