In 1999, the Mekong Private Sector Development Facility (MPDF) performed a feasibility study on the prospects for an SME fund in the Mekong region. By mid 2000, the Asian Development Bank (ADB) took a strong interest in the idea of proceeding with a fund that would invest in private companies in Vietnam, Cambodia and Laos due to the positive impact on the development of the private sector. The initiative within ADB was led by Mr. Randy Earman, who also represented ADB on the Board of MPDF.

Meanwhile, Chris Freund had been working for Templeton in Vietnam from 1995 to 1998, and in Singapore from 1998 until 2001, but intended to move back to Vietnam and establish an investment management business.

When the General Manager of MPDF, Mario Fischel, contacted Chris Freund to ask for feedback on the idea of launching a fund to invest in private companies in the Mekong region, Chris was immediately interested to pursue this opportunity and collaborated with MPDF and ADB towards this goal.

Mekong Capital Ltd was incorporated in the Cayman Islands in March 2001 and opened a Representative Office in Ho Chi Minh City shortly thereafter.

Between March 2001 and April 2002, other investors in Mekong Enterprise Fund, such as State Secretariat for Economic Affairs of Switzerland (SECO), the Nordic Development Fund (NDF) and Finnish Fund for Industrial Cooperation Ltd. (Finnfund), became involved in the process of helping to structure the Mekong Enterprise Fund. The Mekong Enterprise Fund was launched in April 2002, initially with $16 million.

Mekong Enterprise Fund was the first new Vietnam-focused fund to be launched after the Asian financial crisis and the first new fund in Vietnam in the current decade. At the time, the only other fund that was actively investing in Vietnam was Dragon Capital’s Vietnam Enterprise Investments Limited.

The Mekong Enterprise Fund made its first investments in March 2003, and invested in its 10th and final new company in late 2005.

After the Mekong Enterprise Fund completed its final investment in a new company, Mekong Capital launched the $50 million Mekong Enterprise Fund II in June 2006. In connection with the launch of this Fund, Mekong Capital opened its office in Hanoi, and scaled up its team to around 38 people.

Mekong Capital launched the $100 million Vietnam Azalea Fund in June 2007. In preparation for the launch of this Fund expanded the overall company to around 50 employees.

In late 2007, Mekong Capital commenced the transformation of its corporate culture, a major initiative which is expected to be complete by January 2009. The corporate culture to which Mekong Capital is committed is one based on responsibility-taking, integrity, leadership and mutual empowerment.

Mekong Capital intends to launch the Mekong Enterprise Fund III in the fourth quarter of 2008.

 
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