#Singapore #ABC Impact #Temasek Trust #Asian Development Bank

ABC Impact Successfully Closes Fund II

On April 14, 2025, ABC Impact, an Asia-focused impact investment firm, made waves in the investment community by finalizing the closure of its second fund with over $600 million. This substantial amount heralds a doubling of the size of their first fund, a pivotal achievement that demonstrates the growing alignment between institutional investors and the pressing social and ecological challenges facing Asia.

The ABC Impact Fund II is backed by a diverse range of limited partners, including prominent organizations such as Temasek, Temasek Trust, and the Asian Development Bank (ADB), alongside various family offices and high-net-worth individuals. This confluence of development finance and private capital highlights a burgeoning recognition that impact investing can effectively tackle systemic issues through market-driven approaches.

Strengthening Institutional Partnerships

Benoit Valentin, Head of Impact Investing at Temasek, remarked on the urgency posed by our rapidly changing world filled with complex social and environmental hurdles. He stated, "Our partnership with ABC Impact is a cornerstone of Temasek's impact investing strategy, reflecting our conviction that impact capital can scale to address pressing issues. By collaborating, we can foster a more inclusive and sustainable world where every generation can thrive."

Jackie Surtani, Regional Director for ADB in Singapore, added, "The investment from ADB into ABC Impact Fund II underscores our commitment to promoting impact capital across Asia-Pacific. By supporting innovative firms that confront urgent social and ecological challenges, we aim to enhance living conditions throughout the region."

A Vision for a Sustainable Future

Tow Heng Tan, ABC Impact's Chairman, highlighted that the successful closure of Fund II illustrates the confidence that leading institutional investors have in the robust investment strategy of ABC Impact. He emphasized, "By securing external capital from the Asian Development Bank, we reinforce our commitment to shaping a more sustainable and inclusive future in Asia."

Focus Areas for Impact Investments

In an era marked by increasing climate shocks, economic inequality, and uncertainty, ABC Impact Fund II aims to provide practical solutions in sectors often overlooked by traditional investment models. The fund's strategy revolves around four key areas: clean energy and climate resilience, inclusive finance and digital access, health and education, and sustainable food systems.

Notable past investments include Aye Finance, which provides credit to small enterprises in India, Tekoma Energy, a renewable energy developer specializing in solar projects in Japan, and DCDC Kidney Care, a major dialysis network in India that offers affordable treatment to underserved patients.

Navigating Asia's Complex Landscape

Asia's economic and demographic dynamics continue to create opportunities for impactful innovation. However, the complexity of the region necessitates an investment approach that is both grounded and adaptable. David Heng, CEO of ABC Impact, noted, "While policy can accelerate change, it is market demand, capital flows, and competitive forces that ultimately drive the adoption and scale. The companies receiving our investments are not waiting for external signals; they actively shape the future by addressing critical needs in ways that are impactful and financially viable."

Building on the momentum of Fund I, which operated from 2019 to 2024, Fund II allows ABC Impact to enhance its partnerships, expand its reach into high-impact sectors, and support commercially viable solutions with long-term implications.

A Forward-Looking Approach

Impact investing is increasingly viewed not merely as a compromise but as a strategic advantage. ABC Impact's approach is rooted in the belief that financial strength and social benefit can and should evolve together. Tow Heng Tan concluded, "Our progress is made possible through the trust and collaboration with our investors and partners. Together, we demonstrate that financial success and positive impact are not only compatible but mutually reinforcing."

For more information about ABC Impact and their initiatives, visit ABC Impact.