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Investment Process
Investment Criteria
Our Investment Solutions
Post-Investment Support

Investment Process

Our investment process comprises 6 general steps. We seek to proceed in a rapid manner from the initial meeting to investment consummation, although the actual time frames depend on the availability of necessary information.

We perform initial screening to ensure that the investment prospect fits with our investment philosophy and criteria before we proceed to due diligence.
We conduct comprehensive and extensive due diligence to analyze, review and substantiate the business plan and operations of a prospective partner company.
Upon completion of due diligence, the specific terms and conditions of each investment are determined in consultation with the entrepreneur, considering the requirements of the company and the risks and opportunities identified during due diligence.
Our Investment Committee approves every investment.
Execute the legal documents and transfer capital.
Post investment monitoring and implementation of the assistance plan.

Investment Criteria

We seek expansion stage companies in Vietnam with a history of positive cash flows and a high potential for growth.

We target entrepreneurs who demonstrate a strong understanding of the dynamics shaping their industry, with a developed business plan for addressing the opportunities and challenges they face.

Our investment horizon is long-term (3-5 years), and we target companies that are best positioned to grow over this time frame and take advantage of our partnership approach.

Our investment returns are generated from the long-term growth in the underlying business of our partner companies. We do not make short-term or speculative investments.

Our Investment Solutions

We recognize that today’s dynamic SMEs have financing needs and challenges that require flexible and customized financing solutions.

We structure our investments based on the needs of the company, with the specific terms and conditions determined in consultation with the entrepreneur.

A central element of our partnership approach is to share in some of the risks and rewards of our partner companies through our investments. Repayment terms are typically tied to projected cash flows, with our investment returns generated from the long-term growth in the underlying business of our partner companies.

Our investments are typically structured with the following terms:

Size: $100,000 to $2.0 million, denominated in VND or USD. Follow-on investments are also available.
Instrument: Long-term (3-5 years) debt-based investment.
Interest Rate: Consistent with current market rates for commercial bank debt.
Collateral Requirements: Flexible, and can be as low as 25%. To be determined on a case by case basis.
Participation Feature: We typically seek a conversion feature or small equity component to compensate for the higher risk we are willing to assume, including the lack of collateral. We have flexibility in those instances where the entrepreneur does not wish to issue equity, for instance providing additional payments tied to increases in the future cash flows or profits of the business.
Repayment Terms: Typically monthly, but may be tailored to the projected cash flows of the business.
Use of proceeds: Our investments are used to finance a variety of growth oriented activities, including expansion plans, purchase of new technologies and equipment, acquisitions, and market development/expansion.

Post-Investment Support

The SEAF Vietnam team has significant experience working with SMEs to help them effectively address the opportunities and challenges they face. We also provide focused operational and technical support to our partner companies through a technical assistance facility. Additionally, we bring to bear SEAF’s global experience and resources, gained over 18 years of working with SMEs in every stage of development and across a wide variety of industries and geographies.

Some specific areas of our support include:

  • Financial planning, forecasting and corporate finance
     
  • Accounting and financial reporting
     
  • Strategic planning and growth management
     
  • Sales and marketing strategy
     
  • Human resource management
     
  • Operational support – technical assistance in areas of manufacturing and production, costs accounting, internal audits, and business process improvement.

We will formulate a specific support plan for each partner company, to be determined in consultation with senior management and dependent on the needs of the company. SEAF will finance the majority of the post-investment support plan, with the partner company typically co-financing a minority portion.
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Copyright 2007 © SEAF Blue Waters Growth Fund
Investment Process

Our investment process comprises 6 general steps. We seek to proceed in a rapid manner from the initial meeting to investment consummation, although the actual time frames depend on the availability of necessary information.

We perform initial screening to ensure that the investment prospect fits with our investment philosophy and criteria before we proceed to due diligence.
We conduct comprehensive and extensive due diligence to analyze, review and substantiate the business plan and operations of a prospective partner company.
Upon completion of due diligence, the specific terms and conditions of each investment are determined in consultation with the entrepreneur, considering the requirements of the company and the risks and opportunities identified during due diligence.
Our Investment Committee approves every investment.
Execute the legal documents and transfer capital.
Post investment monitoring and implementation of the assistance plan.

Investment Criteria

We seek expansion stage companies in Vietnam with a history of positive cash flows and a high potential for growth.

We target entrepreneurs who demonstrate a strong understanding of the dynamics shaping their industry, with a developed business plan for addressing the opportunities and challenges they face.

Our investment horizon is long-term (3-5 years), and we target companies that are best positioned to grow over this time frame and take advantage of our partnership approach.

Our investment returns are generated from the long-term growth in the underlying business of our partner companies. We do not make short-term or speculative investments.

Our Investment Solutions

We recognize that today’s dynamic SMEs have financing needs and challenges that require flexible and customized financing solutions.

We structure our investments based on the needs of the company, with the specific terms and conditions determined in consultation with the entrepreneur.

A central element of our partnership approach is to share in some of the risks and rewards of our partner companies through our investments. Repayment terms are typically tied to projected cash flows, with our investment returns generated from the long-term growth in the underlying business of our partner companies.

Our investments are typically structured with the following terms:

Size: $100,000 to $2.0 million, denominated in VND or USD. Follow-on investments are also available.
Instrument: Long-term (3-5 years) debt-based investment.
Interest Rate: Consistent with current market rates for commercial bank debt.
Collateral Requirements: Flexible, and can be as low as 25%. To be determined on a case by case basis.
Participation Feature: We typically seek a conversion feature or small equity component to compensate for the higher risk we are willing to assume, including the lack of collateral. We have flexibility in those instances where the entrepreneur does not wish to issue equity, for instance providing additional payments tied to increases in the future cash flows or profits of the business.
Repayment Terms: Typically monthly, but may be tailored to the projected cash flows of the business.
Use of proceeds: Our investments are used to finance a variety of growth oriented activities, including expansion plans, purchase of new technologies and equipment, acquisitions, and market development/expansion.

Post-Investment Support

The SEAF Vietnam team has significant experience working with SMEs to help them effectively address the opportunities and challenges they face. We also provide focused operational and technical support to our partner companies through a technical assistance facility. Additionally, we bring to bear SEAF’s global experience and resources, gained over 18 years of working with SMEs in every stage of development and across a wide variety of industries and geographies.

Some specific areas of our support include:

  • Financial planning, forecasting and corporate finance
     
  • Accounting and financial reporting
     
  • Strategic planning and growth management
     
  • Sales and marketing strategy
     
  • Human resource management
     
  • Operational support – technical assistance in areas of manufacturing and production, costs accounting, internal audits, and business process improvement.

We will formulate a specific support plan for each partner company, to be determined in consultation with senior management and dependent on the needs of the company. SEAF will finance the majority of the post-investment support plan, with the partner company typically co-financing a minority portion.