ADB invests $20 mn in ABC Impact’s $600 mn Fund-II close; water to be among focus areas
The Asian Development Bank (ADB) has signed an equity investment of up to $20 million with ABC Impact Fund II LP (ABC Impact II), a regional private equity fund managed by Singapore-based Temasek Trust Asset Management Pte Ltd (TTAM). With ADB commitment, ABC Impact, the Asia-focused impact investment company, said it has successfully completed the final closing of its second fund at over $600 million, doubling the size of Fund I.
ABC Impact II will focus on four core development goals: better health care and education, financial and digital inclusion, sustainable food and agriculture, and climate and water solutions. The investment will provide growth capital for businesses that drive sustainable development in Asia and the Pacific, with a particular focus on China, India, Indonesia, Malaysia, the Philippines, Thailand and Viet Nam.
“The impact investment landscape in the region remains nascent, with a significant funding gap for growth-stage companies,” said Regional Director and Head of ADB’s Singapore Office Jackie Surtani. “ADB’s investment in ABC Impact Fund II reflects our commitment to catalyzing impact capital across Asia and the Pacific. By supporting innovative businesses that tackle pressing social and environmental challenges, we aim to improve lives and livelihoods throughout the region.”
ABC Impact is signatory to the Operating Principles for Impact Management, a global standard for managing impact investments that has been endorsed by nearly 200 organizations in 40 countries. The fund targets mid-market companies with the potential for significant social and environmental impact. By providing long-term equity financing and capacity building support, ABC Impact II will help these companies scale and attract additional investment. The adherence to ABC’s impact investment principles is independently verified by Bluemark, a global leader in impact verification services, said an official ADB statement.
“The successful closing of Fund II underscores the trust that leading institutional investors have placed in ABC Impact’s disciplined investment strategy. By welcoming external capital from the likes of Asian Development Bank, we are deepening our commitment to shaping a more sustainable and inclusive future in Asia”, said ABC Impact Chairman Tow Heng Tan.
ABC Impact Fund II has drawn support from a diverse group of Limited Partners, including Temasek; Temasek Trust; the Asian Development Bank (ADB); Mapletree Investments; SeaTown Holdings; a Southeast Asia sovereign wealth fund; a US family office; and ultra-high-net-worth individuals, said an official statement.
“We believe capital, when directed with intent, can help shape pragmatic, market-led responses to the most urgent challenges facing our region. From climate resilience to inclusive finance and healthcare access, investing in these areas is both a societal imperative and a long-term business opportunity”, said ABC Impact CEO David Heng.
