GLOBAL GATEWAY EXCELSIOR FUND II

Promoter – Financial Intermediary

SPECIAL PURPOSE ENTITY(IES)/FUND

Location

• Vietnam

Description

The operation consists of an equity participation into Excelsior Vietnam Fund II, a private equity fund managed by Excelsior Capital Vietnam. The fund supports investments into local companies that operate in sectors in line with the EU's Global Gateway strategy.

Additionality and Impact

Through this operation, the EIB will be able to support the growth and institutionalisation of an independent emerging fund manager investing in Vietnam. The EIB will provide much needed equity risk capital to local enterprises. Across emerging markets, access to finance - in particular equity finance - and managerial advice are among the most prevalent barriers for the growth of small and mid-sized companies. The provision of growth capital and managerial support through private equity funds has proven an effective strategy to overcome this market failure. By providing growth capital and managerial advice to local companies, the operation will contribute considerably to boosting enterprise capabilities and competitiveness through access to finance and improved skills.

 

The EIB's commitment is anticipated to support the fund raising and catalyse other investors in a difficult fund raising environment that has been exacerbated by the impact of the Covid-19 pandemic and the war in Ukraine. The EIB is expecting to provide guidance to the fund manager on best market practice for international private equity firms and thus contribute to its institutionalisation.

Objectives

The key objectives include private sector development, the creation of jobs and supporting local enterprises, including through digitalisation initiatives, across several economic sectors in Vietnam. The operation will increase access to risk capital and to support the institutionalisation of local enterprises. The fund aims to invest in a diversified portfolio of companies, supporting the value creation in the underlying investees through a hands-on management approach enhanced by the EIB's Environmental and Social standards.

Sector(s)

• Services - Financial and insurance activities

Proposed EIB finance (Approximate amount)

USD 40 million (EUR 36 million)

Total cost (Approximate amount)

USD 200 million (EUR 180 million)

Environmental aspects

The fund will operate in line with the EIB's Environmental and Social standards.

Procurement

N/A

Status

Signed - 4/12/2024