#Singapore #Temasek #ABC Impact #ADB

ABC Impact Successfully Completes Fund II

ABC Impact, an impact investment firm focused on Asia, has announced the successful closing of its second fund, raising over $600 million. This fund, known as Fund II, marks a significant milestone, effectively doubling the capacity of its predecessor, Fund I. The investment received promises from a diverse group of Limited Partners, including major players like the Asian Development Bank (ADB), Temasek, and Temasek Trust, as well as other prominent institutional investors. This achievement enhances ABC Impact's dedication to addressing pressing social and environmental challenges across Asia through impact-oriented investments.

Strengthening Alignment Through Broader Support

The alignment of ABC Impact with significant institutional backers reflects a growing consensus that impact investing can tackle systemic issues through market-based solutions. According to Benoit Valentin, head of Impact Investing at Temasek, the partnership with ABC Impact is a cornerstone of their impact investment strategy. He emphasized the urgency of social and ecological challenges that require capital to scale up solutions. Through collective efforts, they aim to foster a more inclusive and sustainable world, ensuring that future generations can thrive.

Jackie Surtani, the regional director for ADB, echoed these sentiments, stating that the investment towards Fund II demonstrates ADB's commitment to catalyzing impact capital in the Asia-Pacific region. By supporting innovative firms that address immediate social and environmental challenges, ADB aims to improve livelihoods across the region.

A Shared Vision for a Sustainable Asia

Tow Heng Tan, Chairman of ABC Impact, underscored the trust that leading institutional investors place in ABC Impact's disciplined investment strategy. By welcoming external capital from organizations such as ADB, they reaffirm their commitment to shaping a sustainable and inclusive future for Asia. David Heng, CEO of ABC Impact, reiterated that targeted capital can provide pragmatic, market-driven solutions to pressing regional challenges, such as climate resilience and inclusive finance.

He stated, "Investing in these areas is not just a social necessity but a long-term business opportunity." Fund II aims to create significant impacts in critical sectors, namely clean energy, inclusive finance, healthcare, and sustainable food systems, especially amidst increasing climate changes and economic volatility.

ABC Impact has made notable investments such as Aye Finance in India, which provides loans to micro and small enterprises; Tekoma Energy in Japan, specializing in renewable energy, particularly solar projects; and DCDC Kidney Care, which operates one of the largest dialysis networks in India offering affordable treatments to underserved patients.

Customized Investment Approaches in a Complex Region

With Asia's ever-evolving economic and demographic landscape, opportunities for impact innovation continue to arise. Nonetheless, the region's complexity necessitates a tailored investment approach. While policy changes can expedite adaptive processes, it is ultimately market demand, capital flows, and competitive dynamics that ensure scaling. David emphasized, "The companies we invest in do not wait for external signals; they are proactively shaping the future by addressing critical needs in impactful and financially viable ways."

Fund II builds on the momentum established by Fund I (2019-2024), enabling ABC Impact to expand partnerships, enhance its reach in high-impact sectors, and support commercially viable solutions with long-term potential for positive impacts.

Looking Forward with Purpose

Increasingly, impact investing is recognized as a strategic advantage rather than a compromise. ABC Impact's approach is rooted in the belief that financial strength and societal benefit should be pursued in tandem on the path to progress. The firm credits its advancement to the trust and collaboration of its investors and partners. Tow concluded, "Together, we demonstrate that financial success and positive impact not only coexist but also mutually reinforce one another."

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About ABC Impact:
ABC Impact is a pan-Asian impact investment firm dedicated to delivering measurable social and environmental outcomes alongside risk-adjusted financial returns through sustainable growth. With over $900 million assets under management, the firm employs a disciplined thematic strategy to invest in high-potential enterprises that tackle Asia's most urgent challenges. ABC Impact’s portfolio includes climate and water solutions, sustainable food and agriculture, healthcare, education, and financial and digital inclusion. The firm is part of Temasek Trust Asset Management and benefits from the backing of major institutional investors. For more information, visit www.abcimpact.com.sg.