Private equity market set to see more exits: survey

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Fund managers in Vietnam will begin exiting the market in larger values and volumes in 2011 and 2012, a Grant Thornton survey found.

"Private equity investments made in 2007, the peak year, are only now being readied for exits by many fund managers," the US financial and business advisory firm said last week.

According to the survey, stock listings have been the predominant method used by fund managers for exiting their investments in Vietnam since 2003.

Stock listing accounted for over 60 percent of all exits and they will likely continue to be the preferred exit method for private equity investments in Vietnam.

"This is due to the relatively lower barriers to list and the less onerous compliance requirements for listed companies in Vietnam," Grant Thornton said.

The survey was conducted in December on seven leading managers in Vietnam Dragon Capital, Indochina Capital, Mekong Capital, Prudential Vietnam, VinaCapital, BankInvest, and AIM Capital Management.

During 2003 - 2010, 150 full and partial exits have been achieved by participating fund managers in Vietnam, Grant Thornton said. Exits from existing investments allow fund managers to make new ones without raising additional capital

The firm said the value of private equity investments made by the survey participants exceeded US$1.8 billion.

The peak year for investments was in 2007, when more than $750 million was placed into private equity investments.

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