Temasek-backed private equity firm ABC Impact has announced the successful first closing of its second impact fund, ABC Impact Fund II.
Launched in August 2023, ABC Impact Fund II has garnered support from new investors, notably a Southeast Asian sovereign wealth fund, ABC Impact said in a statement on Wednesday.
Bolstered by the track record of its inaugural fund, ABC Impact has also received significant backing from existing partners, including Temasek Trust, Temasek, SeaTown Holdings, and Mapletree Investments.
Fund II Assets Under Management (AUM) now exceeds $550 million, with the final close expected in 2024.
According to the statement, ABC Impact Fund II is marking a significant milestone for ABC Impact as it continues to advance sustainable solutions and drive positive transformations in Asia.
It said the fund is poised to further expand its impact-driven initiatives across the region.
ABC Impact also said the firm remains steadfast in its dedication to advancing its mission, leveraging the collective expertise and resources of its partners to make a lasting and positive impact on communities and the environment.
“We are pleased to achieve the first closing of ABC Impact Fund II with strong support from both our new and existing partners,
“The robust interest in Fund II is a validation of the strategy embedded in our inaugural fund,” said David Heng, Chief Executive Officer of ABC Impact.
“With a steadfast commitment to disciplined and evidence-based impact investing, we are particularly encouraged by the enthusiasm of new investors joining our mission,
“As we continue to drive meaningful change through our portfolio of purposeful companies, we look forward to more like-minded partners joining us,” he added.
Established in 2019, ABC Impact’s core mission is to generate positive and measurable social or environmental outcomes in Asia while delivering compelling risk-adjusted returns for investors.
The firm’s inaugural $300 million fund has been strategically deployed across various sectors, including financial and digital inclusion, better health and education, climate and water solutions, and sustainable food and agriculture.
The positive outcomes generated since inception have played a pivotal role in attracting investors keen on contributing to impactful and sustainable investment initiatives.
Since its inception, ABC Impact Fund I has invested in 11 portfolio companies and is nearing full deployment.
The portfolio showcases impact-driven companies addressing environmental and societal challenges through innovative solutions.
In 2022, the fund achieved a successful exit from Sunseap, a Singapore-based solar company.
In its latest impact report released in March 2023, the fund disclosed the following impact outcomes: 20.26 million people supplied with essential services; 2.04 million patients provided access to healthcare services; 7.78 million students provided access to quality education content digitally; 31,747 stakeholders benefited from autism therapy services; 2.64 million individuals and micro-enterprises gained access to financial services; 7.76 million farmers globally gained access to customized farming advice and information; 1.68 million tons of carbon dioxide emissions avoided; 42.6 billion liters of water saved through avoidance of livestock agriculture.
As a leading impact investor driving outcomes for Asia, ABC Impact said it is actively participates in globally recognized impact industry initiatives.
In 2022, the firm became a signatory to the Operating Principles for Impact Management (Impact Principles), committing to a global standard for impact investing.
ABC Impact also engaged BlueMark, a Tideline company, for an independent verification of its impact management practices aligned with the Impact Principles.
ABC Impact is also a signatory of the United Nations-backed Principles for Responsible Investments.
In 2023, ABC Impact achieved B Corp™ Certification, affirming its commitment to responsible practices.
The firm has also joined 2X Global, supporting gender equality and diversity at the fund and portfolio levels, with ABC Impact Fund I aligned with 2X criteria.
Additionally, ABC Impact is part of the environmental, social, and corporate governance (ESG) Data Convergence Initiative, contributing to the creation of a standardized set of ESG metrics and a mechanism for comparative reporting among private companies.