Mekong Capital exits hotel decorator AA Corporation

Mekong Enterprise Fund invested in AA in two tranches, in March 2003 and July 2005. AA now represents the fifth full exit by the Mekong Enterprise Fund, and Mekong Capital's eight, according the firm.

According to Mekong Capital's Managing Partner Chris Freund, AA was one of the fund's first two investments and has been a portfolio company for more than eight years. Mekong focused on building its management team, resulting in 2011 being its "best year ever in terms of net profit performance." AA has previously reported $26.7 million in 2009 revenue, which rose to $40 million in 2010. By June 30 of this year, AA claims to have exceeded its full-year net profit target of 123% year-on-year growth from 2010.

AA claims to be one of the leading interior contracting companies and high quality furniture manufacturers in Vietnam, providing services to hotels, residences, spas, retail shops, restaurants and offices. It has recently completed several hotel projects in volatile areas of the Middle East, including the Kempinski Hotel in Baghdad and the Cataract Hotel in Cairo.

Mekong Capital's fourth exit from its $18.5 million Enterprise Fund came in February, when it sold its stake in Minh Phuc Printing and Packaging Company. Other exits occuring the last year include the partial divestment in hotpot restaurant operator Golden Gate Joint Stock Company, and the sales of interests in Masan Consumer and luxury fashion retailer Mai Son Joint Stock Company.

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• Topics
• Southeast Asia
• Exits
• Vietnam
• Exit
• Mekong Capital
• Chris Freund