Private equity firms have come together to form the Myanmar Private Equity & Venture Capital Association to give institutional investors a voice when engaging with the local authorities.
Backed by the UK's CDC Group, the association was officially launched in Naypyidaw and aims to meet every month for training or networking purposes.
The association currently has 11 full members including Anthem Asia, an independent private equity firm and Yangon Capital Partners, a venture capital firm set up by Trust Venture Partners.
This launch marks a milestone in the development of the Myanmar economy since the country started opening up in 2012"
"This launch marks a milestone in the development of the Myanmar economy since the country started opening up in 2012. The investment community has reached critical mass," said association chair Josephine Price, who is co-founder of Anthem Asia.
The membership organisation also counts Delta Capital, Japanese Daiwa PI Partners, London-listed Myanmar Strategic Holdings and YGA Capital among its founding members.
After Myanmar opened up its market in 2012, the country attracted the interest of private equity investors looking to inject their funds. Over $4.15bn of investment capital from the permitted foreign enterprises entered Myanmar in the fiscal year 2018-2019 which ended in September, according to the Directorate of Investment and Company Administration (DICA).
From Oct. 1, 2018 to Sept. 30 this year, 282 foreign enterprises were approved by the Myanmar Investment Commission (MIC).
However, under the National League for Democracy, FDI has declined significantly as Myanmar's image has been tarnished by the Rohingya crisis since 2017.As Myanmar's government is making efforts to revive the economy through foreign investment, US companies say they are keen to expand their involvement.
This year, British government-owned Commonwealth Development Corporation has invested $30m into internet service provider Frontiir, the parent company of Myanmar Net, as the first direct equity investment in the country.
In July, Japanese investment bank Daiwa Securities Group launched a Myanmar-focused fund and locked in another $30m in capital commitment.