Dragon Capital funds secure continuation vote from shareholders

At the funds' annual general meetings in Ho Chi Minh City last Friday, LPs voted in line with the recommendations of the boards that the funds Vietnam Enterprise Investments (VEIL) and Vietnam Growth Fund (VGF) continue to operate.

They indicated that they were against the winding-up of the funds, and elected to extend the interval between "wind-up" votes from two to three years for VGF and from two to five years for VEIL.

"This vote of continuation and the extension of the interval from two to five years clearly demonstrate that the shareholders are encouraged by the prospects for Vietnam," commented VEIL Chairman Hartmut Giesecke.

Marc Faber, chairman of VGF, added: "We have striven to align ourselves with the objectives of our shareholders, and we are pleased that they support the fund in pursuing a long term investment strategy."

Vietnam's GDP is expected to expand by 5% this year, and 5.5% in 2013.

Late last year, Dragon announced that it was in the process of raising its newest vehicle, the Indochina Opportunities Fund, to invest in companies based in Vietnam, Cambodia and Laos. The vehicle was scheduled to announce a first close of $100-150 million by mid-2012, although so far no announcement has been forthcoming.

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• Topics
• Southeast Asia
• Buyout
• Dragon Capital Group
• Vietnam