#Singapore #Fund II #ABC Impact #Temasek Trust

ABC Impact's New Milestone

ABC Impact, a prominent investment firm devoted to creating an impact in Asia, has hit a significant milestone by successfully closing its second fund, accumulating over 600 million USD. This achievement not only represents a doubling of the assets compared to their inaugural fund, but it also highlights the increasing recognition of impact investing within Asia's evolving financial landscape.

A Diverse Support Network

The second fund has attracted an impressive array of investors, including Temasek, Temasek Trust, the Asian Development Bank (ADB), and various high-profile private and institutional investors. This coalition of funding signifies a broader alignment among leading financial institutions, underscoring the belief that impact investments can address systemic issues through market-based solutions.

Benoit Valentin, the head of impact investing at Temasek, emphasized the urgency of addressing complex social and environmental challenges in our rapidly changing world. He noted, "Our partnership with ABC Impact is central to Temasek's impact investment strategy, reflecting our belief in the capacity of these investments to catalyze capital that meets pressing needs. Together, we can foster a more inclusive and sustainable world."

Jackie Surtani, ADB's regional director for Singapore, also remarked on the nascent stage of impact investing in the region and its potential for growth. The ADB's investment in ABC Impact Fund II demonstrates its commitment to stimulating impact capital across Asia and the Pacific.

A Vision for a Sustainable Future

ABC Impact's chairman, Tow Heng Tan, highlighted that the successful closing of Fund II serves as a testament to the confidence that premier institutional investors have in their disciplined investment strategy. "By welcoming external capital from Asian development banks, we reaffirm our commitment to fostering a sustainable and inclusive future in Asia," he stated.

CEO David Heng echoed these sentiments, noting that intentional capital can effectively drive pragmatic and market-oriented responses to the pressing challenges faced by the region. Areas of focus include climate resilience, inclusive finance, and healthcare access, underscoring both societal imperatives and long-term commercial opportunities.

Targeting Key Investment Sectors

Given the escalating climatic upheavals and economic uncertainties in Asia, ABC Impact Fund II is keenly focused on practical solutions within sectors where traditional models have struggled. Their strategic investment areas encompass clean energy and climate resilience, inclusive finance and digital access, healthcare, education, and sustainable food systems.

To date, notable investments include Aye Finance in India, providing loans to micro and small enterprises, as well as Tekoma Energy in Japan, a renewable energy developer specializing in solar projects. Furthermore, they have invested in DCDC Kidney Care, one of India’s largest dialysis networks offering affordable treatments to underserved patients.

Navigating Asia's Diverse Landscape

The economic and demographic dynamism of Asia continues to unlock avenues for innovative impact solutions. However, the diversity of this region necessitates a grounded yet flexible investment approach. David highlighted that while policy can facilitate change, market demand, capital flows, and competitive forces ultimately drive adoption and expansion.

Our targeted enterprises are not waiting for external signals; they proactively shape the future by addressing essential needs effectively and sustainably.

A Promising Path Forward

The establishment of Fund II builds on the momentum generated by Fund I (2019-2024), enabling ABC Impact to strengthen its partnerships, broaden its influence in high-impact sectors, and back commercially viable solutions with long-term impact potential.

Investment increasingly viewed as a strategic asset rather than a compromise is at the core of ABC Impact’s methodology. Their conviction rests on the principle that financial stability must align with societal benefit, progressing hand in hand.

In conclusion, Tow remarked, "Our advances are made possible by the trust and collaboration of our investors and partners. Together, we demonstrate that financial success and positive impact are not only compatible but mutually reinforcing."