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Foreign growth fund backs Vietnamese software firm
SEAF Blue Waters Growth Fund, managed by the company Small Enterprise Assistance Funds, has invested in a growth-oriented software development firm in Viet Nam.
The joint-stock company VietSoftware International (VSII) received mezzanine financing from the SEAF growth fund to support the company’s planned increase in programmers to 800 by 2011 from the current 135.
More staff are needed to meet growing demand for its services from both existing and potential customers.
In addition to investment capital, SEAF will provide VSII with technical assistance to improve the company’s strategy development, corporate governance, operational management, and business networking.
The investment, which comes at a crucial point for the company, will help it expand significantly in a sector that is showing continued demand despite the current global economic downturn.
VietSoftware International is a subsidiary of VietSoftware Incorporated, one of the leading technology service companies based in Viet Nam.
Since 2002, VSII has provided world-class offshore IT services to international clients.
SEAF growth fund mezzanine investment in the development firm delivers a mutually beneficial solution by providing VSII with access to long-term financing without diluting its shareholders, while still allowing the investor to participate in the growth of the company.
"The company has a track record of success and a number of long-term, satisfied, world-class international customers, and SEAF is confident that its investment and support will help it to further realis e its significant potential," said Keirn O’Connor, SEAF growth fund managing director.
Tran Luong Son, VietSoftware International’s chairman, said: "During the period of its fast growth, VSII has been approached by a number of investment funds. We eventually found SEAF Blue Waters Growth Fund to be the best fit for our company."
SEAF Blue Waters Growth Fund, a HCM City-based fund founded in 2007, provides long-term financing to small – and medium-sized enterprises in Viet Nam.
The fund has a total of US$25 million in committed capital from Norfund (the Norwegian Investment Fund for Developing Countries), Finnfund (Finish Fund for Industrial Cooperation Ltd), SIFEM (Swiss Investment Fund for Emerging Markets) and FMO (the Netherlands Development Finance Company).
VietSoftware is its second investment, which makes the fund’s total disbursement to date at almost US$3 million.
Washington-headquartered SEAF is a global firm specialising in the management of private equity and mezzanine funds in emerging markets and has offices in 18 countries.
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