In May this year, VMS Fund II exited its investment in Youdao (NASDAQ: DAO), an online education unit of NetEase (NASDAQ: NTES and HKEX: 9999). The investment was first made in Apr 2018 and the Company went listed in the New York Stock Exchange in October 2019. The Multiple of Invested Capital (MoIC) of the investment is 2.2x (between Apr 2018 and May 2020), or IRR of over 40%.

The COVID-19 pandemic has boosted the digital adoption pace across various sectors. Online education is one of the sectors benefiting the most due to the long-established digital ecosystem and the closure of offline schools. Youdao’s performance has benefitted as a result of the digital nature in its operation and the “tech DNA” from its parent company.

We remain optimistic of the performance of other online education companies in the Fund.

If you would like to hear the latest updates on the Firm and the Fund, please feel free to contact our Investor Relations team at IR@VMSIG.COM.