#Singapore #Fund II #Temasek #ABC Impact

ABC Impact Fund II: A Significant Milestone

ABC Impact, a prominent impact investment firm focused on Asia, has just announced the successful closing of its second fund, raising over $600 million. This achievement effectively doubles the size of its inaugural fund. The completion marks a pivotal moment for the firm as it reinforces its commitment to addressing critical social and environmental challenges in Asia through responsible investments.

Strong Support from Institutional Investors

The second fund has garnered backing from a wide array of Limited Partners, showcasing a growing trend towards collaboration between development finance and private capital. Notable supporters include Temasek, Temasek Trust, and the Asian Development Bank (ADB), among others. This indicates a significant alignment between various stakeholders who recognize the potential of impact investing to tackle systemic issues effectively.

The Vision of Temasek

Benoit Valentin, Head of Impact Investing at Temasek, emphasized that as global challenges grow more complex, partnering with firms like ABC Impact becomes an essential part of their impact investing strategy. He stated, “In a rapidly changing world, creating a more inclusive and sustainable environment is necessary. By joining forces with ABC Impact, we’re able to scale our capital to tackle pressing issues.”

Addressing the Challenges Ahead

Jackie Surtani, ADB's Regional Director, also highlighted the crucial funding gap for growth-stage companies in the region, emphasizing ADB’s belief that supporting innovative businesses is vital for improving lives and livelihoods across Asia.

Commitments to a Sustainable Future

The Chairman of ABC Impact, Tow Heng Tan, remarked on the trust leading institutional investors have placed in their investment strategy, noting that it enhances their commitment to a sustainable and inclusive future. CEO David Heng added, “When directed with intent, capital can facilitate pragmatic, market-led solutions for urgent challenges facing Asia.”

Focus Areas of Fund II

With the increasingly severe problems like climate change and social inequality, Fund II will focus its investments on four key sectors:
1. Clean energy and climate resilience
2. Inclusive finance and digital access
3. Healthcare and education
4. Sustainable food systems

Investment examples include Aye Finance in India, a service providing loans to micro and small enterprises, and Tekoma Energy in Japan, which specializes in renewable energy projects. Additionally, they support DCDC Kidney Care, a prominent dialysis network in India that provides affordable treatment.

The Underlying Investment Philosophy

ABC Impact recognizes that Asia’s demographic and economic growth creates unique opportunities for impactful innovation. However, an adaptive investment approach is critical to navigating the region's complexities. As Heng noted, while policies drive change, it is market demand and capital flows that ultimately dictate success.

Building on Previous Successes

The momentum from Fund I (2019-2024) acts as a springboard for ABC Impact to extend partnerships and broaden its reach across high-impact sectors. Fund II is an avenue for supporting commercially viable solutions capable of yielding long-term positive impacts.

Looking Forward

Impact investing is evolving from a trade-off concept to a strategic advantage, as organizations like ABC Impact demonstrate that financial performance can coexist harmoniously with societal benefits. Tow concluded, “Together with our investors and partners, we are showing that financial success and positive impact can not only coexist, but strengthen one another.”

ABC Impact continues to push boundaries in pursuing a sustainable and inclusive future for Asia. For more details, visit their website at www.abcimpact.com.sg.