1. What are the procedures of investing in a company? How long does it usually take?

The process usually takes around 6 months from the time that an appraisal is commenced.

2. What is the method used in calculating the value of the business?

When doing an appraisal on a potential investment, Nguyen Investment cooperates closely with the company to develop a detailed financial model with realistic financial projections. Nguyen Investment uses this financial model as a basis to propose a valuation to the company’s shareholders at the end of the appraisal process.

1. Does the Fund invest in competing companies in the same industry?

The Fund may invest in multiple companies involved in the same industry but the Fund is very unlikely to invest in two companies that are direct competitors at the time of the Fund’s investment.

2. In what kind of business does Nguyen Investment consider investing?

The Fund’s primary focus is private companies involved mainly in manufacturing, branding and distribution. Although the Fund prefers to invest in private companies, the Fund will also consider investments in equitized companies or foreign owned companies in Vietnam.

3. Does the Fund invest in companies listed on the stock exchange?

No. The Fund is a private equity Fund and makes investments in Vietnamese companies before they are listed on the stock exchange. However, many of the Fund’s investee companies are likely to list on the stock exchange while the Fund is a shareholder.

4. What are the size requirements of companies that want to receive an investment from the Fund?

The Fund typically invests in Vietnamese companies with annual revenues between $10 million and $25 million and annual net profit between $500,000 and $2 million in the year that the Fund makes the investment.

5. Does the Fund lend money to companies?

No. The Fund is not a credit institution. The Fund can only make loans if those loans are convertible into equity (shares).