ABC Impact has closed its second fund at $600 million for impact investments focused on Asia and the Pacific.
The private equity impact fund managed by Temasek Trust Asset Management will invest growth capital in mid-market companies with measurable impact in clean energy and climate resilience, inclusive finance and digital access, healthcare and education, and sustainable food systems. The geographic focus is Asia and the Pacific, with an emphasis on China, India, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam.
The Singapore-based fund attracted institutional capital from Temasek, Temasek Trust, Mapletree Investments, SeaTown Holdings, as well as an unnamed Southeast Asia sovereign wealth fund, a U.S. family office and ultra-high-net-worth individuals. The Asian Development Bank invested $20 million.
ADB’s investment in ABC Impact’s second fund, “reflects our commitment to catalyzing impact capital across Asia and the Pacific,” said ADB’s Jackie Surtani.
Early investments from the fund include affordable dialysis provider DCDC Kidney Care in India and renewable energy developer Tekoma Energy in Japan.
Demand driven
ABC Impact’s fund one raised $300 million in 2019, and invested roughly a dozen companies. Investments included rural small business lender Chongho Bridge, affordable dental care provider Kim Dental In Vietnam and Singapore-based Sunseap, a clean energy provider that it exited in 2021.
“While policy can accelerate change, it is market demand, capital flows, and competitive forces that ultimately drive adoption and scale,” said ABC Impact’s David Heng. Businesses in the fund’s portfolio aren’t waiting for external signals, he says. They are “addressing critical needs in ways that are both impactful and financially sound.”
