Dragon Capital raises $60 million in exits in 2010

The firm sold its 75% stake in Hanoi's Landmark Apartment building in November, 10 years after DC first picked up the target during the Asian crisis as part of a distressed-asset JV deal. According to the firm, during that time, DC restructured the building's outstanding debts and redesigned the hotel to a high-end serviced-apartment complex. The exit was worth $15 million, resulting in an exit multiple of more than 7x and an IRR of ca 22%.

DC additionally made a partial exit from Vinamilk, Vietnam's largest dairy firm, via an open auction to foreign investors. "The exit tranche was about 1% of the company and 12% of our stake," DC noted in a statement. "The $19 million deal was done at a very favorable price compared to the listed market price, with an exit multiple of 5.1x and an IRR of 39% over six years."

The November exits follow DC's full divestment from VP Bank in March. That 10% stake in the firm was sold at a 30% premium to its carrying value, and came at an IRR of 21% after 14 years invested in the company.

"2010 was a particularly difficult year for the Vietnamese stock market, for both internal and external reasons," said Managing Partner Le Hoang Anh of the year's performance. "The listed market headed south for most of the year with very thin liquidity. Things only improved somewhat at the end of the year. Therefore, we were very happy to have successfully done those deals. They were somewhat ahead of our expectations."

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• Topics
• Southeast Asia
• Exits
• Dragon Capital Group