📋 Tender Overview
Website customer/investment
https://excelsiorvietnam.com/
Region
Asia
Country
Viet Nam
Sector
Infrastructure, Manufacturing and Services
Publication date
11/13/2024
Effective date
12/19/2024
Total FMO financing
USD 15.00 MLN
Funding
FMO NV
Environmental & Social Category
(A, B+, B or C)
B
Who is our customer
Excelsior Capital Vietnam Partners II, LP (the "Fund", "Excelsior Vietnam II"), is a generalist mid-market private equity (PE) fund and the successor fund of existing FMO-investee Excelsior Capital Vietnam Partners, LP ("Fund I", "Excelsior Vietnam I"). Like Fund I, Excelsior Vietnam II is managed by a local team based in Ho Chi Minh City, supported by Excelsior Capital Asia, an established PE investment platform in North Asia with over 20 years of experience.
What is our funding objective
FMO committed USD 15m to the Fund at the first closing to support its fundraising and allow it to reach its target fund size. The Fund targets growth-oriented, structured significant minority equity and quasi-equity investments in mid-market companies in Vietnam's consumer, healthcare, technology, education, and logistics sectors.
Why do we fund this investment
By investing in the Fund, FMO will close a funding gap and allow the Fund to reach its target fund size. Through its investment, FMO intends to support local entrepreneurship, stimulate the growth of mid-sized companies, and contribute to economic development and job creation in Vietnam. As a 2X Challenge-aligned fund through committing to FMO's Gender Smart Criteria, FMO's investment specifically supports opportunities for women in the Vietnamese market, thereby qualifying for a 100% Reduced Inequalities (RI) Label.
What is the Environmental and Social categorization rationale
Excelsior Vietnam II is categorized as E&S Category B risk based on the pipeline and investment strategy. The Fund's portfolio is expected to largely contain lower-risk Category B/C investments, which are deemed to have limited adverse environmental and social (E&S) risks and impacts. There is a possibility that the Fund may invest in a few Category B+ deals, but these will be limited to a maximum of two. IFC Performance Standards (IFC PS) that may be triggered are mostly related to PS 1-4. The Fund Manager employs a dedicated E&S manager with an adequate and regularly updated environmental and social management system (ESMS). The ESMS is used throughout each step of the investment process (incl. at exit) and is aligned with the EDFI Exclusion List, Vietnamese National Environmental and Social Laws and Regulations, ILO Core Conventions, and the IFC PS Framework.
