Temasek-backed ABC World Asia closes USD 385 million fund for impact investing

The firm will further invest in China, South Asia, and Southeast Asia.

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ABC World Asia, a Singapore-headquartered private equity fund dedicated to impact investing, has closed its first fund at USD 385 million, according to a statement released by the company.

The fresh cash will be used to invest in companies in South Asia, Southeast Asia, and China, said the company.

Temasek Trust, Temasek, Pavilion Capital, Mapletree Investments, Seatown Holdings, and Sembcorp Industries all participated in this round.

Established in May this year by Temasek Trust, which is the philanthropic arm of Singapore’s investment firm Temasek, ABC World Asia is a private equity firm that invests mainly in companies committed to sustainable development. The firm focuses on themes such as financial and digital inclusion, better health and education, climate and water solutions, sustainable food and agriculture, and smart and liveable cities.

The International Finance Corporation (IFC), World Bank’s investment arm estimates that the global appetite for private impact investment stands at USD 5 trillion. In Southeast Asia, impact investing comes in many forms, ranging from venture capital firms investing in impact-driven deals, such as 500 Startup, to accelerators targeting social enterprises in Indonesia.

ABC World Asia is considered by analysts as a relatively new player to impact investing.