The impact investment firm ABC Impact, which focuses on Asia and is supported by Temasek, the state-owned fund in Singapore, has doubled the size of Fund I with the successful closing of its second fund, which is valued at over $600 million.
In a statement released on Monday, ABC Impact said that this milestone strengthens the company’s resolve to use impact-driven investments to address Asia’s pressing social and environmental needs.
The statement claims that a wide range of Limited Partners, including Temasek, Temasek Trust, the Asian Development Bank (ADB), Mapletree Investments, SeaTown Holdings, a Southeast Asian sovereign wealth fund, a U.S. family office, and a number of ultra-high-net-worth individuals, have endorsed ABC Impact Fund II.
The growing understanding that impact investing can use market-based strategies to address systemic issues is reflected in the convergence of private capital and development finance.
ABC Impact Fund II, which is closing in the midst of growing economic uncertainty, inequality, and climate shocks, focuses on workable solutions in fields where conventional models have failed to produce positive outcomes.
Four priority areas are at the heart of its investment strategy: sustainable food systems, inclusive finance and digital access, healthcare and education, and clean energy and climate resilience.
To date, its investments have included DCDC Kidney Care, one of India’s largest dialysis networks that offers underprivileged patients access to reasonably priced treatment; Tekoma Energy, a renewable energy developer specializing in solar projects; and Aye Finance, which lends money to micro and small businesses in India.
“In a rapidly changing world, we are facing increasingly complex and far-reaching social and environmental challenges,
“Our partnership with ABC Impact is a core pillar of Temasek’s impact investing strategy, reflecting our belief that impact investing can scale capital to address the pressing issues we are facing. By working together, we can create a more inclusive and
sustainable world where every generation prospers,” said Benoit Valentin, Head, Impact Investing, Temasek.
The impact investment scene in the region is still in its infancy, according to Jackie Surtani, ADB’s Regional Director and Head of the Singapore Office, who also noted that there is a sizable funding gap for growth-stage businesses.
“ADB’s investment in ABC Impact Fund II reflects our commitment to catalyzing impact capital across Asia and the Pacific,
“By supporting innovative businesses that tackle pressing social and environmental challenges, we aim to improve lives and livelihoods throughout the region,” he added.
