Mekong Capital, a Viet Nam-focused private equity firm, reported total earnings of nearly US$79 million from its divestments this year to date, including the recent sale of its remaining holdings in the agricultural company Loc Troi Group.

Mekong Capital on Monday said in the first nine months it has fully divested from Loc Troi Group and Vietnam Australia International School and completed several partial  sales of its shares in the biggest local mobile device retailer Mobile World.

On September 28, Vietnam Azalea Fund, one of its four investment funds, sold its remaining 25 per cent stake in Loc Troi Group for $2.8 million. Combining that with the $9.2 million divestment of a 75-per-cent stake in July, the fund earned cumulative proceeds of $12 million at the selling price of VND68,000 (US$3) a share.

The divestment has generated for the fund a gross return multiple of 3.6x in USD and a gross internal rate of return (IRR) of about 18.7 per cent after eight-and-a-half years of holding.

After completing the exit of Loc Troi Group, the fund’s last remaining portfolio company is pharmaceutical firm Traphaco.

Also in September, Mekong Enterprise Fund II continued to divest from Mobile World with a partial sale worth nearly $18 million. This is considered one of the most profitable investments of the fund with a realized gross IRR of 62.6 per cent and gross return multiple of over 133.2x on the shares sold.

Previously, the fund sold its entire holding of Vietnam Australia International School for over $25 million in April, resulting in a gross return multiple of 4.5x (including dividend received) and a gross IRR of 25.8 per cent over the six-year holding period.

Last year, Mekong Capital’s funds made four full exits from Phu Nhuan Jewelry, FPT Corporation, Intresco, and Nam Long and several partial exits of MobileWorld. 

Meanwhile, another investment vehicle Mekong Enterprise Fund III (MEF III) has made a sixth investment this year so far. Launched in May 2015 with committed capital of $112.5 million, MEF III is a private equity fund focusing on Vietnamese consumer-driven businesses in the retail, consumer products and consumer services sectors. MEF III invests between $6 and $15 million in each company.

VNS