Project detail - Excelsior Capital Vietnam Partners II, LP

Who is our prospective 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 will be 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 intends to commit USD 15m to the Fund 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 want to fund this investment?

By investing in the Fund, FMO intends to close a funding gap and provide a stamp of approval as an existing investor in its predecessor fund, Excelsior Vietnam I. 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 an expected 2X Challenge certified fund (certification in progress), FMO's investment will specifically support 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 has been 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.